The American Medical Association voted to approve alternative payment model standards that “bolster rural hospital sustainability,” according to a Nov. 17 news release.
Standards include scheduled fixed-cost payments, “adequate” rates for services that could fluctuate and appropriate patient cost-sharing. Payment models must also reduce administrative burdens.
“To sustain and strengthen access to healthcare for rural residents, the AMA believes that alternative payment models that meet the AMA’s new minimum standards will best support the financial viability of rural hospitals struggling to stay open within traditional payment structures,” Board Member Ilse Levin, DO, said.
Rural health has been at the forefront of conversations for both providers and payers. Recent research found a Medicare tool overpredicts spending for rural beneficiaries, and $50 billion is being allocated by HHS to states to address rural health issues.
