An important reminder and information for Independent Health Facilities regarding the upcoming recoveries under the COVID-19 Advance Payment Program

To: All Independent Health Facilities
Category: Facility Fees Services
Published by: Claims Services Branch, Ontario Health Insurance Plan Division
Date Issued: January 13, 2021

COVID-19 advance payment program

As per INFOBulletin 2145, on April 23, 2020, the Ministry of Health (the ministry) established a three-month advance payment program to provide payments to eligible Independent Health Facilities (IHFs) to address any cash flow issues that may have arisen during the initial stages of the COVID-19 outbreak.

The COVID-19 Advance Payment Program provided monthly, interest-free, automated advance payments that will be recovered from future OHIP payments to IHFs. IHFs that were eligible for advance payments automatically received these payments on their IHF group Remittance Advices (RAs) in May, June and July, 2020 unless they notified the ministry of a request to opt out of the program. Further information was communicated regarding changes to the program as indicated in INFOBulletin 2146.

Advance OHIP payment recoveries

By accepting the advance payment, IHFs were deemed to agree with the terms and conditions regarding set off against future OHIP payments. As the number of COVID-19 cases have continued to rise and due to the province wide shutdown and restrictions that are in place, the ministry would like to advise you that once again it is revising the timing and recovery period for the advance payments as follows:

  • Recovery of advance payments will be applied by setting off these amounts against an IHF’s future OHIP payments beginning with the April 2021 RA (instead of February 2021).
  • The total amount of the advance payments will continue to be recovered in six equal installments
    from monthly OHIP payments beginning on the April 2021 RA and ending with the September 2021 RA (instead of February – July 2021 RA).
  • No interest will be charged.

Note: Advance payments will be automatically recovered from the IHF group RA. The recovery will report as a deduction on the RA under Accounting Transactions, as follows: ‘EMERG ADVANCE (COVID19) RECOVERY’.

Cheque repayment

IHFs that wish to return the advance payments prior to the recovery period starting in April 2021 were previously advised that they may submit a cheque. Cheques for early advance repayments must be received by the ministry by February 22, 2021; following that date, cheques will only be processed at the end of the recovery period to ensure accurate payment amounts.

Negative balances

If an IHF does not have sufficient earnings on their group RA to set off the recovery, the RA will show a negative balance (amount owing).

Negative balances will not accumulate interest and cannot be deducted directly from the group’s bank account. When a negative balance is generated on the RA, it will carry over to the following month’s RA and any payments on that RA will automatically be applied against the negative balance. This will continue until the negative balance has been repaid.

An IHF in a negative balance at the end of the recovery period may send a cheque to return the remaining balance owing to the ministry. Once payment recoveries have started in April 2021, IHFs are asked to wait for the September 2021 RA before sending a cheque to ensure that it reflects the correct repayment amount. Any cheques received after February 22, 2021 and before the September 2021 RA is issued will not be processed by the ministry.

Further instructions regarding cheque repayments will be communicated prior to September 2021.

No further action will be required by an IHF that is not in a negative balance at the end of the recovery period.


COVID-19; Advance Payment Program; APP; EMERG ADVANCE; negative balance

Contact information

Do you have questions about this INFOBulletin? Email the Service Support Contact Centre or call 1-800-262-6524.