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

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.