By NextBestFitCritical Access Hospitals (cost-based reimbursement)
replacedYears 1–4Provider payment & regulation
Today
About 1,370 small rural hospitals are paid 101% of reasonable cost by Medicare instead of prospective rates.
Under the plan
Become a protected category in global budgets: budgets set from audited costs plus a margin, with a floor so isolated hospitals cannot be squeezed out.
Trade-off
Protects rural access; cost-based budgets reward high costs and weaken efficiency incentives.