ASSUMPTIONS DRIVING CHANGE
Assumption: The current system of paying providers is
unsatisfactory because of perverse incentives and
policies to reduce payment per service.
Rural reality: Policies constraining payment affect rural providers
more than urban because of greater dependency on
Medicare payment for total revenue.
Rural providers receive some special payment in the
current system, which would be at risk if the system is
Rural providers are low-volume, low-margin providers
particularly vulnerable to change in Medicare payment.