Rural Montana Hospitals Apply for ACO Grant

A collaboration of Montana hospitals has applied for the three-year, $16 million Innovative Challenge Grant from CMS to form an accountable care organization with 48 of the state's rural hospitals, according to a Montana Watchdog report.

The Frontier Medicine Better Health Partnership applied for the grant. It's a collaboration that includes more than 12 hospitals, along with Pacific Northwest University, Mayo Clinic Practice Based Research Network and other non-profit and private organizations.

The group's plan has earned support from Montana Governor Brian Schweitzer, who wrote the following in a January 20 letter to CMS: "The challenges faced by critical access hospitals and rural health centers in rural Montana are daunting and I believe FMBHP will help address several primary issues with rural/frontier medicine in the state," according to the report.

Mr. Schweitzer said healthcare costs in Montana are twice that of Saskatchewan, Canada, which is also rural, has a comparable population and government subsidized healthcare. A significant difference between the two regions is that 87 percent of healthcare in Saskatchewan is delivered in smaller, local settings. In Montana, about 10 percent of patient care occurs in hospitals considered to be rural— nearly the opposite of Saskatchewan.

A decision on the grant is expected by April 1.

Related Articles on ACOs:

4 Points to Assess the Success of a Pilot ACO
Antitrust Issues for ACOs: 4 Things to Know
Survey: Majority of Healthcare Organizations Don't Intend to Become Medicare ACOs




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