Ever read a government report and think, that’s a lot of words for a simple message? When it comes to Provider Relief Fund compliance, though, those words matter. Congress appropriated $178 billion to the Department of Health and Human Services. The goal was to help eligible providers cover health care-related expenses or lost revenues tied to COVID-19. From the start, the rules for using the funds were clearly spelled out.

Under the Provider Relief Fund program, HHS set the policy direction. The Health Resources and Services Administration handled administration. Providers who received payments had to use them to prevent, prepare for, or respond to COVID-19. The funds also had to cover eligible expenses or losses. They couldn’t duplicate other funding sources or go toward prohibited activities or excessive salaries.

The Office of Inspector General recently checked how this played out in practice. In a review of 30 assisted living communities, auditors found that 21 used the funds appropriately. These communities spent them on administrative, general, and health care-related costs or to offset lost revenue linked to the pandemic. However, nine communities didn’t meet federal requirements. According to the OIG summary report published by HHS, seven used the funds for unallowable expenses. Two others incorrectly calculated lost revenue.

These mistakes weren’t minor. The OIG recommended that the seven communities return $283,000 to the federal government. For the two that overstated lost revenue by $11 million, the OIG advised them to repay the excess or substitute it with eligible expenses. Details are available in the OIG audit report.

That’s a lot of detail, but the takeaway is simple. When the government allocates funds for a purpose, it expects them to be used correctly. Whether the mistake is intentional or not, Provider Relief Fund compliance depends on strong internal checks, accurate reporting, and careful documentation. Taking time to verify how your community uses the money can prevent major problems later.

Stay well and stay informed!