Soon, all hospitals have to consider alternative payment models such as accountable care organizations (ACOs) to avoid falling behind in Medicare payment. Critical access hospitals (CAHs) could face challenges in accountable care due to their cost-based Medicare reimbursement, but joining an ACO is no less important for these small, often rural facilities.
Unlike a traditional hospital that is paid a set amount based on a diagnosis, CAHs are paid based on estimated costs and go through a cost settlement process with CMS at the end of each year. These cost settlements could create some financial uncertainty, making it hard to predict performance in an accountable care organization.
Recently we were joined by Eric Shell from Stroudwater Associates for an interactive webinar to learn how CAHs can better manage cost reporting and minimize effects from prior period settlements on value-based payments while creating more sustainable, predictable revenue.