Client Alert: CMS Announces New Funding Models for Rural Health Systems

Rural healthcare systems continue to face a number of challenges in providing much-needed healthcare services in underserved areas, including workforce shortages; ageing infrastructure; and a large proportion of Medicare, Medicaid, and uninsured patients. These obstacles contribute to financial and organizational hardships that can hinder the overall wellbeing of rural hospital systems. However, the Centers for Medicare & Medicaid Services recently revealed alternative payment models in an effort to alleviate these impediments that have challenged rural healthcare systems. This Client Alert outlines these new alternative payment models and identifies key issues that systems should consider when evaluating each model.