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From 2019 to 2024, 18 rural Pennsylvania hospitals participated in the Pennsylvania Rural Health Model, an experiment that provided hospitals with fixed revenue payments instead of traditional fee-for-service reimbursements to improve financial stability and support preventive care.
Researchers found mixed results, concluding that the program did not clearly improve hospital finances or community health outcomes, and one participating hospital ultimately closed despite being part of the initiative.
Even so, several states, including Maryland, Connecticut, Hawaii, Rhode Island, and New York, are pursuing similar models while policymakers debate whether these approaches can provide the long-term funding rural hospitals need.
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