Factors Influencing Rural Hospitals’ Decisions To Join An Alternative Payment Model: A Mixed-Methods Study

Hospitals' participation in voluntary Alternative Payment Models has implications for model evaluation and performance. This mixed-methods study examined factors underlying hospitals' decision to participate in the Pennsylvania Rural Health Model (PARHM), a voluntary model under the Center for Medicare and Medicaid Innovation that combined hospital global budgets and care transformation plans. Quantitative analyses tested for pre-PARHM differences in characteristics, and qualitative analyses examined contextual factors identified in interviews with hospital administrators across participating and eligible nonparticipating hospitals. At baseline, hospitals that joined PARHM had smaller total margins, fewer inpatient discharges, and greater likelihood of being independent compared with nonparticipating hospitals. Qualitative findings suggested that the desire to improve financial stability and maintain independence influenced decisions to participate, whereas the desire to preserve operational autonomy and flexibility for future growth influenced the choice not to participate. These findings can inform the development and targeting of future Alternative Payment Models, with specific considerations for rural hospitals.

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Publication Details

Journal
Health Affairs
Published
2025-07-01
DOI
https://doi.org/10.1377/hlthaff.2024.01609
Primary Topic
Healthcare Policy and Management
Type
article
Field-Weighted Citation Impact
0.00
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article

Factors Influencing Rural Hospitals’ Decisions To Join An Alternative Payment Model: A Mixed-Methods Study

Eric T. Roberts, Judy Chang, Bruce L. Jacobs, Donald Bourne et al.
Health Affairs
Healthcare Policy and Management
article

Factors Influencing Rural Hospitals’ Decisions To Join An Alternative Payment Model: A Mixed-Methods Study

Eric T. Roberts, Judy Chang, Bruce L. Jacobs, Donald Bourne, Nicole Ober, Lindsay M. Sabik, Zhaojun Sun, Manisha Bhattacharya, Jeremy M. Kahn, J. C. Barnes, Kimberly J. Rak
article en

Abstract

Hospitals' participation in voluntary Alternative Payment Models has implications for model evaluation and performance. This mixed-methods study examined factors underlying hospitals' decision to participate in the Pennsylvania Rural Health Model (PARHM), a voluntary model under the Center for Medicare and Medicaid Innovation that combined hospital global budgets and care transformation plans. Quantitative analyses tested for pre-PARHM differences in characteristics, and qualitative analyses examined contextual factors identified in interviews with hospital administrators across participating and eligible nonparticipating hospitals. At baseline, hospitals that joined PARHM had smaller total margins, fewer inpatient discharges, and greater likelihood of being independent compared with nonparticipating hospitals. Qualitative findings suggested that the desire to improve financial stability and maintain independence influenced decisions to participate, whereas the desire to preserve operational autonomy and flexibility for future growth influenced the choice not to participate. These findings can inform the development and targeting of future Alternative Payment Models, with specific considerations for rural hospitals.

Health AffairsVol. 44(7)
University of Pittsburgh (US), Oral Roberts University (US), Nicolet Area Technical College (US), Zhaotong University (CN), Men's Health Network (US), Barnes Hospital (GB), Jacobs (United States) (US), Changchun University (CN), Saudi Arabia Basic Industries (United States) (US), Donaldson (United States) (US)
Openalex Percentile: Top 77%
Healthcare Policy and Management
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