Phase 1: Enactment & build · Step 1.8
Set hospital global budgets
Months 6–18; annual negotiation thereafter · UHA regional offices; Payment Rates BoardDiscuss this step
marketlikelihood: mediumimpact: medium
Hospital closures in commercially dependent markets
Systems that relied on commercial margins can't adjust, even with the transition fund.
Early warning signs
- Days cash on hand
- Bond rating downgrades
Mitigation
- Transition fund
- Essential-facility designation
- Regional capital boards
Implementation risks
| Risk | Mitigation |
|---|---|
| Hospital closures in markets where commercial revenue subsidized losses. | Hospital Transition Fund; closure reviews; regional boards can designate 'essential' facilities with protected budgets. |
| Rationing to stay within budget. | Volume corridors and wait-time guarantee penalties paid by the hospital, not the patient. |