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DOH Still Accepting VAPAP Applications for Financial Assistance

By Chelsea Murray, on August 22nd, 2022

As part of New York State’s Enacted Budget, up to $100 million is being made available to nursing home providers. If a provider is in severe financial stress distress, they can apply for financial relief dollars to maintain operations and vital services through March 31, 2023, while they implement longer-term solutions to achieve financial sustainability.

In July 2022, the Department of Health (DOH) formalized the process to apply through issuing the application and establishing deadlines to apply. With the first round of Vital Access Provider Assurance Program (VAPAP) applications having been submitted August 1, 2022, DOH will be accepting future applications on a rolling basis throughout the year, and providers still in need can apply here. The next two waves of deadlines are November 1, 2022, and February 1, 2023. However, the process to position yourself for a successful award should start well in advance of those deadlines.

Before completing the application process, assure you are eligible to apply:

  • Be defined as an Article 28 residential healthcare facility that is not operated by a county or public benefit corporation; AND
  • Have less than 20 days of cash as of December 31, 2021; OR
  • Have had a negative operating margin within the last two complete calendar years; AND
  • Are not currently the subject of known investigation or enforcement action by CMS, the Department of Justice, HHS-OIG, the Office of the Attorney General, or the Office of the Medicaid Inspector General.

Though not codified within the application requirements, as part of the first round of questions and answers, the DOH stated the facilities could back out revenue from government stimulus sources (PPP, PRF, ERC, etc.) in calculating their operating margin and days cash on hand.

All applications will need to include financial information that demonstrates severe financial distress as well as strategic initiatives plans and multi-year financial projections that demonstrate a path to long-term sustainability and improved resident care and satisfaction.

Multiple criteria will be evaluated when DOH reviews and assess the facility’s application when considering awardees. After DOH’s review is complete and it’s decided a provider is eligible to be awarded funds, DOH will consult with the Division of Budget and determine the amount to be awarded. Awards may result in an amount lower than original requested funding in the application. Similar to the rolling deadlines noted above, notices of awards will also be on a rolling basis. Additionally, payments will be made monthly to providers that are awarded funds under the VAPAP program.

If you have any questions or need assistance in completing the VAPAP application, please feel free to contact Chelsea Murray or Jonathan Miller.

This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.

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Written By

Chelsea Murray March 21
Chelsea Murray
Executive Vice President

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