Medicare Payment Acceleration Pilot Program for Rural Hospitals in Alabama
According to Stephen Hemsley, the CEO of UnitedHealthcare, Alabama may soon see a pilot initiative designed to expedite Medicare payments to rural hospitals.
During a discussion with Rep. Terry Sewell from Alabama, Hemsley explained that the Rural Payment Acceleration Pilot aims to simplify the Medicare Advantage payment process for these hospitals.
Dr. Don Williamson, the former president and CEO of the Alabama Hospital Association, shared that nearly half of Alabama’s 52 rural hospitals are struggling financially, as reported recently by AL.com.
In light of some federal funding on the horizon, hospitals are urging private insurers to improve reimbursement rates and make additional changes to sustain rural healthcare.
Hemsley mentioned that by implementing “real-time processing,” rural facilities like Hale County Hospital could see a quicker cash flow from Medicare Advantage payments.
A news release from earlier this month indicated that the pilot program is set to reduce typical Medicare Advantage payment timelines by half—from an average of fewer than 30 days to below 15 days within the next six months.
Bobby Hunter, CEO of UnitedHealthcare Government Programs, commented that “rural hospitals are the backbone of our communities.” He emphasized that speeding up payments will allow healthcare providers to focus more on patient care. UnitedHealthcare aims to collaborate with rural healthcare providers to create solutions that ensure accessible care close to home.
Advocates for hospitals argue that these payment adjustments are essential for keeping facilities operational.
Dan Howard, the current president and CEO, noted in October that without timely payment for services rendered, creating a viable business model becomes increasingly difficult.
Currently, similar pilot programs are in progress in Oklahoma, Idaho, Minnesota, and Missouri, with plans to expand into Alabama later. However, Hemsley did not provide a specific timeline.
Moreover, Alabama’s healthcare system is facing additional strains, including rising insurance premiums and shortages of physicians in various specialties.
