The decision to abandon RCOs was attributed to the uncertainty over funding and potential changes at the federal level. In addition, the initial costs of implementing the program deterred the state from pursing RCOs.
Alabama Gov. Kay Ivey said the state would pursue an alternative plan for Medicaid reform; however, they are looking for a less risky plan with a similar outcome.
“While the financial implications could be challenging for our state, the new flexibilities and waiver options that the Trump Administration is willing to consider gives our state Medicaid program new options to accomplish similar goals without incurring the same level of increased upfront costs associated with the RCO program,” Stephanie Azar, Alabama’s Medicaid commissioner, told the Alabama Business Journal.
The RCO program, pioneered in Alabama by former Gov. Robert Bentley, was a Medicaid reform proposal that was expected to make the state program more efficient, eventually driving down the cost to provide care to the state’s Medicaid population.
More articles on healthcare finance:
10 hospitals seeking RCM talent
Mercy Hospital receives $1M pledge for renovations
Moody’s assigns ‘Aa2’ rating to Cleveland Clinic Health System’s bonds
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
