Federal initiative to transform rural healthcare announced

Aug. 12, 2020

The Community Health Access and Rural Transformation (CHART) Model has been announced as part of the Improving Rural Health and Telehealth Access and Centers for Medicare and Medicaid Services’ (CMS’) Rethinking Rural Health initiative, state a CMS release. Collectively, the administration aims to ensure individuals in rural America have access to high-quality, affordable healthcare.

The CHART Model also ties payment to value, increases choice and lowers costs for patients. CHART will empower rural communities to develop a system of care to deliver high-quality care to their patients by providing support through new seed funding and payment structures, operational and regulatory flexibilities and technical and learning support.

“The CHART Model represents our next opportunity to make investments that will transform the rural health care system, allowing us to use every lever to support all Americans getting access to high-quality care where they live,” said CMS Administrator Seema Verma.

Americans living in rural areas have worse health outcomes and higher rates of preventable diseases than the over 57 million Americans living in urban areas. Impediments such as transportation challenges disproportionately impact rural Americans and their access to care. Rural providers also experience challenges. For example, many rural healthcare facilities experience health care workforce shortages, and operate on thin margins and over 126 rural hospitals have closed since 2010. Many rural hospitals also have difficulty recruiting and retain medical professionals to rural areas. Meanwhile, value-based payment models have accelerated nationally, though rural health care providers have been slow to adopt these models.

Providers interested in the CHART Model have two options for participation:

Community Transformation Track

An investment of up to $75 million in seed money to allow up to 15 rural communities to participate in the Community Transformation Track. The upfront investment empowers communities to implement care delivery reform, provide predictable capitated payments, and offer operational and regulatory flexibilities to build a sustainable system of care. Through these flexibilities, healthcare providers across the community will be able to pursue care transformation such as expanding telehealth to allow the beneficiary’s place of residence to be an originating site and waiving certain Medicare hospital conditions of participation to allow a rural outpatient department and emergency room to be paid as if they were classified as a hospital. The model also allows participant hospitals to waive cost-sharing for certain Part B services, provide transportation support, and gift cards for chronic disease management.

In September, CMS will select up to 15 rural communities to participate in this track, with the winners being announced in early 2021 and the model starting in Summer 2021.

Accountable Care Organization (ACO) Transformation Track

This track offers upfront investment to assist rural healthcare providers in improving outcomes and quality for rural beneficiaries. This track builds on the success of the ACO Investment Model (AIM), which has saved $382 million over three years. Providers participating in the ACO Transformation Track will enter into two-sided risk arrangements as part of the Medicare Shared Savings Program (MSSP) and may use all waivers available in the MSSP program. CMS anticipates releasing a Request for Applications in the Spring 2021 and selecting up to 20 rural ACOs to participate in this track starting in January 2022.

CMS also has:

·       Taken steps in the CY 2021 Physician Fee Schedule Proposed Rule published on August 4, 2020 to extend the availability of certain telemedicine services after the COVID-19 public health emergency ends, giving Medicare beneficiaries more convenient ways to access healthcare particularly in rural areas.

·        Increased the wage index for low wage index hospitals, including many rural hospitals. The wage index is an adjustment to Medicare payments for local labor costs. This should support low-wage index hospitals’ efforts to improve quality, attract more talent, and improve patient access.

·        Reduced the minimum required level of supervision for hospital outpatient therapeutic services furnished by all Critical Access Hospitals (CAHs) from direct supervision to general supervision. General supervision means that the procedure is furnished under the physician's overall direction and control, but the physician's presence is not required during the performance of the procedure. This provides more flexibility to rural hospitals, particularly CAHs, in providing care for their patients.

CMS has the release.