Should we subtract the PRF phase 1 grant and the PPP loan from our revenues for the Total Annual Revenues (box 10) number?
I don’t recall seeing anything in the instructions stating to back out those amounts. By leaving them in, it decreases the potential revenue drop when comparing the 2019 periods- and thereby reduces the deficit they are trying to help address. It would seem to me that if they wanted such widely-known revenue sources to be removed, they would have explicitly said so in the instructions.
Keep in mind that the PPP forgiveness is not typically booked as revenue at the top of the income statement. Most accountants are classifying it as “Other Non-Taxable Income” at the bottom of the income statement- which throws things off a bit. A handful of accountants are booking it in other ways and it’s probably best to get their opinion, etc…
Sorry I mean should those numbers be subtracted from box 12 - Annual Net Patient Care Revenues?
Like others here, all our 2020 income is “Annual Net Patient Care Revenues” aside from the 1st PPP loan (which was forgiven in 2021) and the PRF phase 1 amount.
So box 10 is the Gross sales from the tax return and box 12 should be gross sales minus PPP, minus PRF phase 1?
This is a judgment call. If you want aggressively show a loss of revenue, then remove the PPP and Phase1 amounts. I tend to be more conservative and would be careful about overstating the loss revenue that happens from removing the PPP forgiveness and P1 grant.
I found this in the instructions, so I think I will take out the PPP loan and the PRF. I am thinking the PPP loan would go under “other pandemic assistance.”
The following are not considered patient care revenues and must be excluded from the reported
patient care revenues figures:
• insurance settlements;
• retail, or real estate revenues (exception for nursing and assisted living facilities’ real estate
revenues where resident fees are allowable);
• prescription sales revenues (exception when derived through the 340B program);
• grants or tuition;
• contractual adjustments from all third-party payors;
• charity care adjustments;
• bad debt;
• any gains and/or losses on investments;
• prior PRF payments received; and
• other pandemic assistance received, including Rural Health Clinic COVID-19 Testing funds.
Curious how people are showing their operating expenses. I’d like to show our quarterly quickbooks P&L with an annotation at the bottom subtracting out the charitable contributions from overall patient care operating expenses. Alternatively, I could download it in excel and remove the non-patient care operating expenses that way. Any one have any thoughts about presentation?
not sure right but our non patient expenses (basically charity) are tiny and the same each year so I just used the P&L to show the expenses and included everything to keep it clean.
I watched the Phase 4 and ARP Rural – providing supporting documentation webinar and they have an example. Go here and scroll down to “Technical Assistance” Future Payments | Official web site of the U.S. Health Resources & Services Administration
Here are the slides. One page 11 & 12 they show the examples for the Revenues and Expenses. So I pretty much copied their format.https://www.hrsa.gov/sites/default/files/hrsa/provider-relief/phase4-rural-webcast-10132021.pdf
The format is similar to what Quicken would print for our P&L but I wanted to remove some our categories from our P&L anyway so I redid the format to be more similar to theirs.
Awesome! Thanks for sharing!
Thanks everyone for your responses. I watched the webinar as well. I plan to download my quarterly’s into excel and remove charitable contributions and business gifts so it’s format is consistent with our regular reports.
I was wondering if anyone has heard of a timeline of when the funds will be disbursed?
The portal now says payments will start in December and continue into January.