UPDATED: April 20 at 4:30 p.m. ET
UnitedHealthcare is building on its work to support rural hospitals and will now exempt these facilities from most prior authorizations.
The insurance giant said in an announcement on Monday that the shift will apply across all lines of business. In addition, UHC will accelerate payments by up to 50% for about 1,500 rural hospitals and all critical access hospitals across the country.
Earlier this year, the company unveiled the Rural Payment Acceleration Pilot program, which was established in four states. In the initiative, Medicare Advantage payments were sped up from an average of just under 30 days to fewer than 15 days, improving cash flow for these hospitals, many of which are facing tremendous financial strain.
The insurer said it intends to expand that effort to the broader population and include both Medicaid and commercial payments by the end of 2026. The company also plans to have the prior authorization exemptions in place by the end of the year.
The accelerated payments pilot will roll out immediately in five additional states: Alabama, Arkansas, Kentucky, Virginia and West Virginia.
"Rural care providers are essential to their communities yet fragile, so we welcome the chance to make meaningful investments to support their work," said Tim Noel, CEO of UnitedHealthcare, in the announcement.
In addition to the payment programs, UnitedHealthcare said it is partnering with health systems to support a "hub-and-spoke" care model. Within this framework, community-based points of care are linked with regional clinical expertise from leading providers.
The initiative will first focus on challenges such as maternal care, diabetes and post-surgical care, according to the announcement. The company believes that the hub-and-spoke approach "may serve as a model for additional markets."
PUBLISHED: Jan. 14 at 1:17 p.m. ET
Insurance giant UnitedHealthcare is rolling out a new program that aims to support the finances of cash-strapped rural hospitals.
Through the pilot, UHC will accelerate the payment timelines in its Medicare Advantage plans by 50% over the next six months, lowering the time from an average of less than 30 days to less than 15 days, according to an announcement from the company.
The insurer said in the announcement that the program is designed to "deliver immediate cash‑flow relief and support the sustainability of these important rural hospitals."
“Rural hospitals are the backbone of their communities,” said Bobby Hunter, CEO of UnitedHealthcare Government Programs, in the announcement. “By speeding up payments to these critical facilities, we’re helping providers focus on what matters most: patient care."
The pilot will initially launch in four states: Oklahoma, Idaho, Minnesota and Missouri. UnitedHealth said the first participants were selected based on their potential to "maximize impact" and support the future of this initiative and the development of additional interventions in rural healthcare.
UnitedHealthcare will work closely with the hospitals during the rollout and provide key data on progress with the providers, policymakers and community stakeholders, per the announcement. After the initial six months, the company intends to take the learnings from the pilot and determine future expansion and scale for the program.
"Our goal is to co-create solutions with rural providers that support accessible care close to home," Hunter said. "Together, we will learn quickly and scale what works."