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Run the Hospital Transition Fund

Years 1–5 · UHA regional officesDiscuss this step

How other countries handled this same piece of implementation, what happened, and what it means for this plan.

Side by side

CountryApproachResultLesson for this plan
This plan (U.S.)Hospitals whose revenue falls more than 5% below baseline when commercial rates disappear receive temporary support that tapers to zero by Year 6, conditioned on cost-reduction plans.
GermanyHospital Structure Fund (2016+) pays to close or convert excess hospital capacity; 2024 hospital reform adds transition funding.Gradual consolidation of an over-bedded system.Transition money works best when tied to restructuring.
TaiwanNo dedicated fund; hospitals adapted to global budgets through volume and cost cutting.Smaller hospitals consolidated; staffing strain.Without transition support, adjustment falls on staff.

Germany

What they did
Hospital Structure Fund (2016+) pays to close or convert excess hospital capacity; 2024 hospital reform adds transition funding.
What happened
Gradual consolidation of an over-bedded system.
Lesson for this plan
Transition money works best when tied to restructuring.

Taiwan

What they did
No dedicated fund; hospitals adapted to global budgets through volume and cost cutting.
What happened
Smaller hospitals consolidated; staffing strain.
Lesson for this plan
Without transition support, adjustment falls on staff.

More precedent

  • Medicare's 'hold harmless' payments during the outpatient PPS transition (2000s).