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Senate Advances Rural Health Redesign Center

September 27, 2018

Yesterday, Senate Bill 1237, which would establish the Pennsylvania Rural Health Redesign Center (RHRC) Authority and the Pennsylvania Rural Health Redesign Center Fund, was passed unanimously by the Senate’s Health & Human Services Committee.

The bill would establish the RHRC, which would serve as the governing body of the new rural global budget model slated to begin January 1, 2019. The RHRC also would serve to provide technical assistance to participants in the model as they build and execute global budgets and begin transforming the way they deliver care in their communities.

This new, multi-payer, global budget initiative is a payment model in which hospitals are provided a fixed amount of funding for a fixed period of time to improve the health of Pennsylvania’s rural communities, rather than fee-for-service rates for individual services or cases.

The proposed pilot project is one avenue that could hold promise for providing rural hospitals with more predictable funding to maintain crucial health care services and improve the health of their patients and communities.

The Pennsylvania Department of Health has identified eight potential pilot hospitals and the parties are working to finalize program details and execute participation agreements.

HAP has served to convene interested hospitals, and serves as an intermediate between the state and providers in the early phases of pre-implementation. HAP will continue to provide support to members as they begin to evaluate the feasibility of joining the pilot in future years.

For more information about Pennsylvania’s rural hospitals and/or the rural global budget pilot, contact Kate Slatt, HAP’s senior director, innovative payment and care delivery.

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