1. ARIZONA HEALTHCARE FORUM JULY 21-22, 2011 PHOENIX, AZ RURAL HEALTH CLINICS 101

2. RHC 101 Objectives  Define a Rural Health Clinic  Identify the Specific Requirements  Indicate Advantages of Provider-Based Designation  Identify Disadvantages of Provide-Based Designation 2

3. Definition of a RHC  Established through Public Law 95-210, the Rural Health Clinic Services Act, 1977, to increase the provision of primary care services for Medicare and Medicaid patients residing in rural communities.  RHC can be provider-based or freestanding (public, private, or not-for-profit) 3

4. Requirements for a RHC  Staffed with a mid-level practitioner practicing at least 50% of the time  Provide basic laboratory services  Develop written clinical protocols and operational policies and procedures  Conduct an annual evaluation  Gain certification by Medicare 4

5. RHC Shortage Area Location Requirements  Must be in a Health Professional Shortage Area (HPSA), Geographic Primary Care or by Population Group  Must be in a Medically Underserved Area (MUA)  Possible Governor designation  Designation must be less than 3 years old 5

6. Advantages of Provider-Based Designation  Potential of significant higher reimbursement (looking at all payors in the aggregate)  Increased coordination between hospital and physicians  Increased clinical integration with hospital  Greater flexibility in financing and efficiencies with administration and shared staff 6

7. Potential Disadvantages of Provider-Based Designation  Increased costs related to hospital wage and benefits  More facility costs  Less effective cost management  Decreased physician control of practice staff  Less control of financial accountability and productivity

8. Upcoming Event for More Info  MARK YOU CALENDAR NOW Webinar Series – Issues in Rural Health Planning Thursday, July 21, 2011, 1:00-2:00 pm Understand the Pros and Cons of Rural Health Clinics

9. Questions + ADHS/RHO Contacts  Tracy Lenartz, ADHS Consultant  Joyce Hospodar, Senior Program Coordinator  hospodar@u.arizona.edu; 520.626.2432 hospodar@u.arizona.edu 9