Rural Hospitals to Benefit from Improved Reimbursement Program
In an effort to support rural healthcare facilities, a federal initiative is offering higher reimbursements for patient care to eligible hospitals. This opportunity is part of a program that compensates hospitals based on the actual costs of patient care rather than the often lower Medicare rates.
The Centers for Medicare and Medicaid Services (CMS) have opened applications for the Rural Community Hospital Demonstration Program, which is designed to assist rural hospitals by providing reimbursements that more accurately reflect the cost of care. This program has been in place for decades and allows up to 30 hospitals to participate simultaneously. It is scheduled to run until June 2028.
Currently, hospitals across 20 states, including Arizona, are eligible to apply for this program. To qualify, these hospitals must be located in rural areas, have fewer than 51 beds, and offer 24-hour emergency services. Moreover, they should not be receiving other financial support based on their rural status.
With the program aiming to add 10 more hospitals, interested facilities need to submit their applications by March. This initiative underscores a commitment to ensuring that rural hospitals can sustain their operations while providing essential medical services to their communities.
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