Medicare Rural Hospital Flexibility Program

The Medicare Rural Hospital Flexibility Program has opened applications for funding to support critical access hospitals (CAHs) in rural areas. The core objective of the program is to improve the quality of healthcare services available in rural communities and ensure they are tailored to community needs.

The program aims to provide training, technical assistance, and encourage innovative solutions that will lead to sustainable improvements in the rural healthcare system. This includes appropriate preventive, ambulatory, pre-hospital, emergency, and inpatient care with the ultimate goal of delivering high value to patients and resulting in healthier rural populations.

Additionally, the program aims to build capacity and support quality improvement, quality reporting, performance improvements and benchmarking. It is also intended to help facilities seeking designation as CAHs and to establish or expand rural emergency medical services (EMS).

It will work on long-term goals such as improving the care quality of CAHs, including CAH-operated clinics, balancing finances and maintaining services, and modifying necessary aspects to meet changing community requirements. The program also aims to ensure that patient care is effectively integrated across the rural healthcare delivery system.

Moreover, this funding opportunity serves as a resource center to help address needs and demonstrate results in five key program areas, primarily focusing on quality, financial and operational improvements in CAHs, and aiding rural hospitals in transitioning to CAH status.

Given the rapid shifts in the healthcare landscape towards value-based care and alternative payment models, the program encourages states to develop projects supporting innovative care models. Depending on individual needs, these projects may fall into the following categories: CAH Quality Improvement, CAH Financial and Operational Improvement, CAH Population Health Improvement, Rural EMS Improvement and CAH Designation. The latter is compulsory only if requested by rural hospitals.

For more in-depth information, refer to the Program Requirements and Expectations section.