Pennsylvania Rural Health
Model (PARHM)
First
Annual Evaluation Report - Key Takeaways:
The
approach to payment reform in this Model attracted a range of
participants from a variety of hospital types (e.g., critical access
hospitals, prospective payment system, independent, system-affiliated,
and varying financial status). However, hospital participation has been
lower than anticipated, resulting in challenges to achieving scale
targets and a smaller share of revenue covered by the global budget.
Medicare’s fixed, biweekly payments helped participants manage
fluctuations in volume and provided financial stability. Additionally,
while the Model contributes to short-term financial stability,
independent rural hospitals continue to struggle with long-term
sustainability. Some hospitals opted for long-term financial stability
through system acquisition and mergers. Large cost savings also may not
be feasible in the Model due to the limited timeline to realize
significant spending reductions and to the hospitals’ tight operation margins.
The Two
Page Overview:
The
Report (includes an Executive Summary):
Additional
Supporting Materials:
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