Senate Bill 314 establishes an authority and fund that will support the Pennsylvania Rural Health Model, a program unveiled in March that supports the payment model transition.
“Every Pennsylvanian deserves access to quality healthcare within a reasonable distance from home,” Mr. Wolf said in a news release. “The Rural Health Redesign Center Authority and Pennsylvania Rural Health Redesign Center Fund will help ensure the hospitals that serve rural Pennsylvanians can provide necessary services even with a lower patient volume.”
State Sen. Lisa Baker, who introduced the bill, said many of the state’s rural hospitals face acute financial challenges, prompting concerns from the communities housing them about potential closures.
The legislation is designed to help the financial stability of these hospitals using global budget methodology. Ms. Baker said this methodology creates an annual, prospective budget with regular, predictable payments to hospitals from payers. According to the state health department, the budget is based on historic revenue data and adjusted for inflation and for care delivery changes.
Ms. Baker said the legislation also is intended to help rural hospitals develop and carry out expanded and innovative community health services.
Read more about the legislation here.
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