AICPA has revised its Technical Questions and Answers (TQAs) on CARES Act related to health care entities.
Tax & AccountingHealthApril 28, 2021

AICPA Revises TQAs on COVID-19, CARES Act and Related Issues for Health Care Entities

By:

AICPA Revises TQAs on COVID-19, CARES Act and Related Issues for Health Care Entities

The AICPA has revised its Technical Questions and Answers (TQAs) under Section 6400, Health Care Entities, relating to provisions under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), specific to health care entities.

 Health Care Entities

The AICPA has revised its Technical Questions and Answers (TQAs) under Section 6400, Health Care Entities, relating to provisions under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) specific to health care entities.

TQA Section 6400, Health Care Entities, includes guidance in the form of questions and answers for practitioners in application of FASB standards by hospitals, physician’s offices, and other health care providers and entities. As noted in TQA Section 6400.63, the CARES Act “attempted to alleviate some of the financial strain on hospitals, physicians, and other health care entities through a series of new policies that temporarily boosted Medicare and Medicaid payments, allowed for added flexibility in treatment modalities, and expanded the availability of advance or accelerated payments from Medicare.” The Cares Act also established a Provider Relief Fund to be used for economic support of health care entities in connection with health care-related expenses or lost revenues attributable to COVID-19 and treatment of uninsured COVID-19 patients.

Because the pandemic continues to create a financial strain on hospitals, physicians, and other health care entities, the AICPA has revised its TQAs, originally issued in 2020, to help nongovernmental health care entities account for payments received from the CARES Act, the Provider Relief Fund, and boosted Medicare and Medicaid payments. These TQA Sections apply to accounting used by nongovernmental health care entities that have received Provider Relief Funds as of the revised date of the TQAs (April 2021).

Revised TQAs

The revised TQAs include:

  • TQA section 6400.63, “Background to Sections 6400.64–.70 — CARES Act Provisions Specific to Health Care Entities”;
  • TQA section 6400.64, “Accounting for Provider Relief Fund Phase 1 General Distribution Payments;”
  • TQA section 6400.66, “Period of Accounting for Provider Relief Fund General Distribution Payments;” and
  • TQA section 6400.68, “Accounting for Payments Received Under the Medicare Accelerated and Advance Payment Program.”

COVID-19 (Coronavirus) Resources for Tax & Accounting Professionals

Wolters Kluwer is right by your side to help you stay up to date with tax and compliance changes and support your ability to work remotely. Please visit our visit our webpage for more resources.

 

By CCH ARM Editorial 

Keep Reading on CCH® Accounting Research Manager.

Not a subscriber? Sign up for a Free Trial

Explore related topics
Solutions for Tax & Accounting Professionals

Tax, accounting, workflow, and firm management solutions to help your firm succeed, with the research tools you need to stay informed.