Rural Hospitals Form Regional Networks to Maintain Independence Amid Consolidation
Independent rural hospitals are forming regional networks to gain negotiating power, reduce costs, and participate in value-based care while avoiding acquisition by larger health systems. North Dakota's 23-hospital Rough Rider High-Value Network exemplifies this trend, launched with state support to serve a significant portion of the state's Medicaid and Medicare population. These networks allow small hospitals to achieve economies of scale in contracting and care delivery without surrendering operational control. The trend reflects rural providers' efforts to remain viable as standalone entities while meeting evolving payment and quality requirements.
Rural hospital network formation affects Medicaid managed care organizations' provider network adequacy, contracting strategies, and rural access obligations, particularly in states with significant rural Medicaid enrollment.
Managed Care
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