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New Report Concludes That Achieving Value in Rural Areas May Require Increased Spending

A new report from the Physician-Focused Payment Model Technical Advisory Committee (PTAC) conclude that achieving value in rural areas may require increased spending.


PTAC is an independent federal advisory committee and they have sent a report to the Secretary of Health and Human Services on key issues related to encouraging rural participation in population-based total cost of care (PB-TCOC) models. This model is a type of alternative payment where payment is determined by the costs and utilization for all covered medical services delivered to an individual or a group.


This report compiles information from previous payment model proposals that PTAC reviewed, published literature addressing this topic, and from input received during a meeting that was focused on rural communities last year. They have concluded that while value-based care often focuses on improving quality while reducing spending, it may require increased spending to achieve value in rural areas.


Increasing rural provider participation in PB-TCOC models requires a sustainable path to value-based care that includes a multi-payer approach and a longer path for taking on risk in rural areas. PTAC recommended a multi-pronged approach that would improve rural infrastructure, increase and enhance sustainable funding, enhance recruitment and training of rural health physicians and providers, increase community health organization capacity, and address health disparities.


More information can be found here.

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