CMS unveils new payment model for rural hospitals: 10 things to know

Here are 10 things to know about the Community Health and Rural Transformation Model:.

CMS announced Aug. 11 that it is releasing a new payment design to supply capitated payments and up-front financial investments to health care organizations in rural areas..

1. Through the CHART Model, CMS stated it aims to resolve disparities by supplying a method for rural neighborhoods to transform their health care delivery systems by leveraging ingenious financial plans in addition to operational and regulatory flexibilities..

2. The brand-new payment design will include 2 choices for participation: the community transformation track and the ACO transformation track..

Community transformation track.

CMS will choose up to 15 lead companies for the neighborhood transformation track. A lead organization is a single entity that represents a rural community.

Lead organizations and their community partners will get in advance cooperative arrangement financing of up to $5 million. Getting involved health centers will receive financial flexibilities through a foreseeable capitated payment amount.

5. Lead organizations are accountable for managing cooperative contract funding, hiring individual healthcare facilities, engaging the state Medicaid company, developing relationships with other lined up payers, convening an advisory council, and making sure compliance with design requirements, CMS said..

ACO improvement track.

6. CMS will select approximately 20 rural-focused ACOs to receive advance payments as part of signing up with the Medicare Shared Savings Program. The goal is to assist CHART ACOs improve results and quality of look after Medicare beneficiaries through value-based payment models..

7. A CHART ACO will have the ability to get a one-time in advance payment of a minimum of $200,000 plus $36 per recipient to take part in the five-year arrangement period in the Medicare Shared Savings Program..

8. A CHART ACO will be able to get a potential per recipient monthly payment of a minimum of $8 for as much as two years..

Model timeline.

9. CMS will select up to 15 rural communities to participate in the neighborhood improvement track in early 2021, and the very first efficiency period will start in July 2022..

10. CMS will select up to 20 ACOs to get involved in the ACO transformation track in fall 2021, and the performance duration will begin in January 2022..

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CMS will choose up to 15 lead organizations for the community change track. A lead organization is a single entity that represents a rural neighborhood. Lead companies and their community partners will receive in advance cooperative arrangement funding of up to $5 million. Getting involved medical facilities will get monetary flexibilities through a predictable capitated payment quantity. CMS will pick up to 20 rural-focused ACOs to get advance payments as part of joining the Medicare Shared Savings Program.