CLIP: Pennsylvania taps Geisinger, UPMC for rural global budget experiment

Geisinger Health Plan and UPMC Health Plan will be inaugural members of a new program in Pennsylvania that provides rural hospitals with a plan to have stable funding while transitioning away from a traditional fee-for-service reimbursement model. The Pennsylvania Rural Health Model is a radical experiment to help rural hospitals transform into more financially viable organizations that redesign their services to focus on the best ways to keep their populations healthy. That could eventually involve some hospitals closing their inpatient units and shifting to outpatient, emergency and behavioral health services. The program pays the hospitals a fixed monthly total and allows them to use the money how they think best serves their community.