Everyone knows that rural health care systems are stressed: costly populations, low reimbursements, staffing shortages, transportation problems—and the 900 billion to one trillion dollar cuts upcoming in Medicaid will severely add to those stresses. But rural providers also have advantages when it comes to the chances for transformation. In a recent video interview, we explore the opportunities in rural health, particularly the use of technology for value-based care with Pranam Ben, Founder & CEO at The Garage and Brittany Sachdeva, COO at Cibolo Health.
Ben says that 60% of health care payments already have some form of value-based modifier built into it, and credits this with reducing costs in the U.S. from an expected 6 trillion dollars to 5 trillion.
Rural organizations are often exceptionally strong at primary care delivery, but Sachdeva points out a towering challenge to value-based care for rural health: some 50% to 65% of costs are incurred in other facilities outside the ones used by patients for primary care. Technology solutions such as cleaner, well-integrated data and better coordination are required to make value-based care work.
What Sachdeva found is that the most impactful value based care strategy is when it’s an extension of the care team while still keeping the provider relationship central. Using Garage-generated prioritization lists in the background allows care teams to focus on the right patients without disrupting the provider-patient relationship.
The reality is that what works in urban markets often does not work in rural communities due to unique challenges around access, affordability, transportation, awareness, and social determinants. On the positive side, Ben says, rural providers are very committed and have a “strong fabric” in their communities and are very resilient. They are not focused on maximizing the number of encounters. Furthermore, according to Sachdeva, it may be easier to implement new workflows at a small facility where there’s easier coordination and the staff trusts their leadership.
Both interviewees say that the $50 billion recently earmarked for improving rural health care in the Rural Health Transformation Program (RHTP) comes at a critical moment as communities prepare for the impact of the upcoming Medicaid reductions. Ben and Sachdeva suggested that this funding creates a great opportunity to use these funds to modernize infrastructure, virtualize care delivery, automate workflows with AI, train the workforce, and better position rural communities for long-term sustainability.
Ben says that the principle is to “focus on the right patients at the right time.” Value-based care means more screening and early disease management. Sachdeva also emphasized that these investments impact the entire continuum of care and that payer partners must actively be part of these efforts. Great payer partners are the key to being successful in value-based care.
This requires integrated data that is turned into “actionable insights.” Payer and provider data must be better integrated, perhaps requiring support at the state level. Providers are operating with lean teams and need “one version of the truth” to focus on the patients that matter most within VBC contracts.
On top of a strong data infrastructure, AI can look through millions of patient records to identify revenue opportunities. Sachdeva points out that wearable devices can produce more accurate interventions by learning each patient’s personal baseline, instead of depending on “just what the textbook says is normal.”
Getting “rural-relevant” contracts is also important. AI can help reduce the manual labor of dealing with many contracts at many payers. One of the largest barriers to successful VBC participation in rural markets is having enough scale and having payer relationships structured appropriately for rural organizations. Cibolo and The Garage partnered together to help rural health organizations really address these obstacles. Through this collaboration, the BlazeLink Contract Compliance Agent was born.
In our interview, Pranam noted that contracts can now be consumed by the agent in approximately 0.25 seconds on average and analyzed against millions of records to identify revenue opportunities. Given rural facilities often operate on extremely narrow margins, even recovering a fraction of the typical 3–6% of compromised revenue can materially impact sustainability.
Sachdeva shared that AI is becoming a necessity, not a replacement for providers. The “people” aspect of care cannot be removed. These technology and AI tools though can reduce the operational burden rural facilities face around contract compliance and understanding reimbursement methodologies.
Learn more about what’s happening in rural health to address the challenges, making rural health’s value based care efforts successful, and how technology can help in these efforts in this interview with The Garage and Cibolo Health.
Learn more about The Garage: https://www.thegaragein.com/
Learn more about Cibolo Health: https://cibolohealth.com/
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About David Matalon