MedPAC determined that although the quality of care is mixed in rural hospital settings, the Medicare margins are higher. Urban hospitals averaged an overall Medicare margin of -4.8 percent in 2010 while rural hospitals adjacent to urban hospitals averaged an overall Medicare margin of -0.9 percent.
The organization also reiterated several guiding principles for rural payments, including targeting providers that are the sole source of care and ensuring that payments are empirically justified.
Related Articles on MedPAC:
MedPAC Recommends 1% Increase for Hospital Inpatient, Outpatient Services
MedPAC Discusses Payment Changes for Post-Acute Providers Starting FY 2013
AHA Opposes MedPAC’s Proposal to Equalize E/M Medicare Payment Rates
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