Updated: 9/1/2010
by Healthcare Business Specialists
What is a Rural Health Clinic?
The rural health clinic (RHC) program was established in 1977 to address an inadequate supply of physicians who serve Medicare and Medicaid beneficiaries in rural areas. The program provides qualifying Clinics located in rural and medically underserved communities with payment on a cost-related basis for outpatient physician and certain nonphysician services. For RHC purposes, any area that is not defined by the U.S. Census Bureau as urbanized is considered non-urbanized. RHCs are located in areas that are designated or certified by the Secretary of the Department of Health and Human Services as Health Professional Shortage Areas (HPSA) or Medically Underserved Areas (MUA).
As of March, 2009 there are 3,751 rural health clinics in the United States. The major advantage that rural health clinics have over regular physician practice is an increase in both Medicare and Medicaid reimbursement. In fact, the increases in Medicaid reimbursements can be dramatic. For this reason; surprisingly pediatric clinics are the specialty that has the largest increase in reimbursement when converting into a rural health clinic. Just about all of rural America is eligible for RHC status as of now. This is changing with proposed regulations that would limit the areas that RHCs could be located. (most states have already implemented these proposed regulations; however, there are few that have not) If you are interested in becoming a rural health clinic don’t wait to convert as final regulations limiting your ability to become a rural health clinic could be issued at any time. Now is the time to act; if you want to enjoy the enhanced reimbursement that a rural health clinic offers.
If you are interested in becoming a rural health clinic; please review this summary document and if it is something that interests you contact us at (423) 243-6185 or la_vita_nouva@hotmail.com.
http://www.cms.hhs.gov/MLNProducts/Downloads/rhcfactsheet.pdf
Here is a manual on how to start a rural health clinic. Some of the information is a little dated; but, it will give you a good idea of what you are up against.
How to Start a Rural Health Clinic (PDF)
March 7, 2010: This week we went back and reviewed all the RHC startup procedures and manuals and the process to become a rural health clinic. Here is the 133 page PDF that came from the process. If you are starting a rural health clinic this should help or give us a call; we will be glad to assist you.
Rural Health Clinic Startup - Phase 1 - Application - Updated March 1, 2010 (133 page PDF)
This is the "Am I rural" website which is really useful to determine if you are eligible to participate in the RHC program.
http://ims2.missouri.edu/rac/amirural/
6/11/2009: Here is a nice document from CMS on the certification of RHCs that I found while researching for our upcoming seminars.
http://www.cms.hhs.gov/SurveyCertificationGenInfo/downloads/SCLetter09-14.pdf
RHC Policy and Procedure Manual RHC Policy Procedure Template
Blank Annual Evaluation Form: Annual Evaluation Report Template