A New Hospital Model in Rural Areas: The Rural Emergency Hospital


Project Overview


To support rural hospitals in their consideration of the Rural Emergency Hospital (REH) conversion and with the application and conversion process; through educational resources and learning events, customized financial modeling, and strategic planning.

Project Motivation

Mathematica is providing technical assistance to rural hospitals in their consideration of REH as a path to improve rural hospitals’ financial outlook, and ultimately prevent hospital closures. Given our past work in financial modeling for rural Pennsylvania hospitals, and the Centers for Medicare & Medicaid Services (CMS) Community Health Access and Rural Transformation (CHART) Model, we are the ideal partner for supporting REH.

Partners in Progress

  • Rural Health Redesign Center
  • Wellness & Equity Alliance

Prepared For

U.S. Department of Health and Human Services, Health Resources and Services Administration

The Rural Emergency Hospital: a new provider type designed to prevent rural hospital closures.
The Rural Emergency Hospital (REH) is a new provider type, designed by the Centers for Medicare & Medicaid Services (CMS) to reduce the number of rural hospital closures through innovative payment reform, and by prioritizing close alignment between outpatient services and rural community healthcare needs. The REH designation is the first new rural provider type since the critical access hospital (CAH) was established in 1997.  REHs will provide emergency and outpatient services, and will be paid by Medicare at a rate that is 5% above OPPS payment, including a monthly facility payment totaling $3.2 million per year.
Mathematica supports the Federal Office of Rural Health Policy (FORHP) under the Health Resources and Services Administration (HRSA) by assisting The Rural Emergency Hospital Technical Assistance Center to providing direct technical assistance to small rural hospitals, critical access hospitals, and rural community stakeholders who are interested in exploring the benefits and feasibility of converting to REH. Our technical assistance activities include custom financial modeling, virtual learning events, and developing and sharing educational resources. Mathematica will also monitor the effectiveness of technical assistance received by hospitals throughout the initial period of this new provider type.

Related Staff

Sule Gerovich

Sule Gerovich

Senior Fellow

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Sandra Chao

Sandra Chao

Senior Researcher

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James Haven

James Haven


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