Use of Funds: Can providers include the entire cost of capital facilities projects as eligible expenses, or will eligible expenses be limited to the depreciation expense for the period?

Expenses for capital facilities could have been fully expensed only in cases where the purchase was directly related to preventing, preparing for and responding to the coronavirus. Examples of these types of facilities projects include:

• Upgrading a heating, ventilation, and air conditioning (HVAC) system to support negative pressure units
• Retrofitting a COVID-19 unit
• Enhancing or reconfiguring ICU capabilities
• Leasing or purchasing a temporary structure to screen and/or treat patients
• Leasing a permanent facility to increase hospital or nursing home capacity

In order for the capital facilities projects’ costs to have been expensed, the project must have been fully completed by the end of the Period of Availability associated with the Payment Received Period.

(Updated 8/30/2021)