<%@LANGUAGE="VBSCRIPT" CODEPAGE="65001"%> National Advisory Committee on Rural Health

U.S. mapThe National Advisory Committee
on Rural Health and Human Services

U.S. Department of Health and Human Services

NATIONAL Advisory Committee
on Rural Health and Human Services

RECOMMENDATIONS BY YEAR:

2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998

1997 | 1996 | 1995 | 1994 | 1993 | 1992 | 1991 | 1990 | 1989

2006 RECOMMENDATIONS

Recommendation 06-01:

  • The Secretary should include rural pharmacy services as a focus for existing Departmental grant programs.

The Committee has identified several grant programs in the Department that could be used effectively to promote and support accessto pharmaceuticals and pharmacy services in rural areas. These include the Quentin Burdick Interdisciplinary Grants authorized under Title VII of the Public Health Service Act, the Rural Health Network Development Grants authorized under Title II, Section 330A of the Public Health Service Act, the Rural Health Outreach Grants authorized under Title II, Section 330A(f) of the Public Health Service Act, grants to support schools of pharmacy authorized by Title VII of the Public Health Service Act, and the 340B Medication Discount Program. The Secretary should identify other programs as well. Programs with appropriate authorizations should encourage applications from qualified organizations that can present innovative ideas for improving or sustaining access to pharmaceuticals and pharmacy services in rural areas, and for integrating pharmacy services with other components of rural health care delivery systems.

Recommendation 06-02:

  • The Secretary should seek authorization to allow pharmacists to be eligible for the National Health Service Corps, and to provide the funding for the National Health Service Corps to provide them with scholarships and loan repayments options.

The National Health Service Corps recently completed a demonstration program that placed a small number of pharmacists in underserved areas of the country. The Committee believes that the mission of the Corps should now be expanded to include pharmacists among the other health professionals eligible for loan repayments, scholarships and placements through the Corps. Moreover, the Committee is aware of the potential difficulties posed by the lack of criteria for designating pharmacist shortage areas in rural parts of the country. The Committee believes, however, that the existing criteria for designating Health Professionals Shortage Areas are a reasonable proxy for shortages of pharmacists and could be used by the Corps until such time as more specific criteria could be developed.

Recommendation 06-03:

  • The Secretary should use the AHEC program to promote and support programs to better integrate rural pharmacy providers with other components of rural health care delivery.

The AHEC program has been, and continues to be, an effective source of support for educational programs and other efforts to help rural communities and rural health care providers develop more integrated systems of care. The critical role of pharmacy providers in rural areas and the need for them to become a more integral part of local health care delivery systems should be recognized and supported through the AHEC program.

Recommendation 06-04:

  • The Secretary should require workforce studies conducted by the Health Resources and Services Administration to analyze any potential differentials between rural and urban in terms of health professions workforce. The Secretary should also charge HRSA to conduct a follow-up study to the 2000 pharmacy workforce report.

In presenting this chapter, the Committee was able to use some limited information from a major study of the nation's pharmacy workforce conducted by HRSA in 2000. That study (and others like it) did not provide data on urban and rural differences in the pharmacy workforce. The Committee believes that any future studies should attempt to identify and present workforce data that allows comparisons between urban and rural areas. Further, the Committee recommends that the Secretary require HRSA to do an analysis of the urban/rural distribution of pharmacists in 2006. This study is critical given the projected disparity in the nation's supply and demand for pharmacists.

Recommendation 06-05:

  • The Secretary should support research on the potential risks of pharmacy closures in rural communities using evidence-based research centers supported by the Agency for Healthcare Research and Quality.

The Committee has found that more research needs to be conducted as to the potential factors that might place a rural community at risk of losing their local pharmacy. In identifying those issues, the Committee believes it will be easier to develop programs to target those risks.

Recommendation 06-06:

  • The Secretary should recommend to Congress that the list of eligible entities for the 340B Drug Pricing Program be expanded to include Rural Health Clinics and Critical Access Hospitals.

Under the 340B program, rural health clinics should qualify if they operate on a sliding fee scale and Critical Access Hospitals should qualify if they show that they have a Disproportionate Share Percentage greater than 11.75 percent if paid under the Medicare Inpatient Prospective Payment System. Rural Health Clinics and Critical Access Hospitals that meet these criteria must be considered a vital part of the health care safety net in rural areas and should be recognized as such under the 340B program.

The Committee also recommends that the Secretary provide additional resources to the HRSA Office of Pharmacy Affairs that administers the 340B program. Throughout the year, the Committee received testimony that many entities eligible for the program are not aware of its benefits or have been unable to seek participation because of staffing limitations and other factors. Further, these entities often need technical assistance related to administration of the program at the local level. Presently, the Office of Pharmacy Affairs lacks sufficient resources to provide effective outreach to eligible entities and the technical assistance they require.

Moreover, the Committee recommends that the Office of Pharmacy Affairs should conduct a study to determine the extent of urban and rural differences in participation in the program and take steps to provide appropriate assistance to eligible rural entities.

Recommendation 06-07:

  • The Secretary should support an annual study for the next five years that examines the impact of the Medicare Modernization Act on rural pharmacies and rural residents' access to pharmaceuticals and pharmacy services.

In this chapter, the Committee has discussed some concerns about the potential impact of the new Medicare Modernization Act on rural seniors and pharmacy services providers. The validity of these concerns will not be known until the new benefit has been implemented and tested. However, the Committee believes that rural areas pose unique challenges for the program and there is the potential for problems to surface over the next few years. The Committee believes that the Secretary should support studies and monitoring systems to determine how well the program is serving rural beneficiaries and pharmacy providers so that problems can be identified and resolved at the earliest possible time. There may be opportunities to integrate such studies with other efforts that are already planned.

Recommendation 06-08:

  • The Secretary should conduct a demonstration to examine the use of Medicare payments in providing medication therapy management services to seniors who are taking multiple medications.

The Committee recommends that the Secretary conduct a demonstration program to examine the use of Medicare payments to provide medication therapy management services to seniors who are taking multiple medications and are at greatest risk for negative drug interactions. Medication therapy management services can have a significant impact on the health of seniors who are at high risk for negative drug interactions and other complications stemming from dependence on multiple medications. Demonstration programs should be conducted to identify those seniors most at risk in both the Medicare fee-for-service and Medicare Advantage settings. Such programs would also help to identify positive outcomes of medication therapy management services, as well as their impact on the cost of the Medicare program.

Recommendation 06-09:

  • The Secretary should evaluate the impact of telepharmacy projects in rural areas.

The Committee believes that telepharmacy has potential to increase access to pharmaceuticals and pharmacy services, particularly in communities that are unable to establish and sustain pharmacy services due to low population density, unfavorable economic circumstances, geographic isolation or other factors. However, the Committee is concerned that telepharmacy applications must improve access without compromising the quality of services that are available. The Committee believes that more information is needed on how well telepharmacy applications are balancing the issues of access and quality in rural areas. The evaluations should include studies on best practices and outcomes.

Recommendation 06-10:

  • The Secretary should evaluate existing software programs that have been developed to assist low-income citizens in obtaining access to prescription medications through pharmaceutical assistance programs offered by pharmaceutical manufacturers. After a thorough examination, the Department should disseminate information on these programs to Federally Qualified Health Clinics, Rural Health Clinics and other providers serving rural areas.

During its work on this chapter, the Committee received testimony describing several recently developed software programs designed to help low-income groups identify pharmaceutical assistance programs available to them and streamline the application process. The Committee also learned that many safety-net providers have been unable to aid their patients in applying for pharmaceutical assistance programs due to staffing limitations. Thus, these software programs would be able to mitigate that issue. The Committee believes that the Department can play an important role in identifying successful software programs, disseminating information about them and assisting providers in their implementation.

Recommendation 06-11:

  • The Secretary should work with the Congress and the Federal Communications Commission to allow the use of Universal Service Funds for rural health care providers to build greater infrastructure for broadband access in rural communities.

Recommendation 06-12:

  • The Secretary should encourage groups like the American Health Information Community to consult with the Federal Office of Rural Health Policy, HHS Office of Intergovernmental Affairs and other key national rural health organizations about the impacts of their decision-making on rural communities.

Recommendation 06-13:

  • The Secretary should devote funding resources to ensure that technical assistance is available for rural communities after the final release and dissemination of the VistA-Office EHR software.

Recommendation 06-14:

  • The Secretary should commission the Agency for Health Research and Quality to conduct a study examining the costs and benefits of EHR use in rural communities to determine the disconnect between the payers and the beneficiaries of adoption. In addition, this study should examine the benefits and pitfalls of adoption for rural communities in terms of public health and syndromic surveillance reporting. This study should include data collection that allows policy makers to differentiate between rural and urban, provider size, and impact of affiliation with larger integrated health systems.

Recommendation 06-15:

  • The Secretary should use the Section 301 Demonstration authority within the Public Health Service Act to support rural HIT collaborative grants to encourage the collaborative networking model for HIT purchasing and information exchange.

Recommendation 06-16:

  • The Secretary should develop HIT performance measures for post-conversion critical access hospitals with a focus on HIT and quality of care.

Recommendation 06-17:

  • The Secretary should expand the eligibility for the Doctors Office Quality - Information Technology (DOQ-IT) program available through the Medicare Quality Improvement Organizations to allow assistance to rural health clinics and Federally Qualified Health Centers.

Recommendation 06-18:

  • The Secretary should encourage standardization of rural caregiver programs and uniform availability of services in rural areas across states and the nation.

The 50-State Study reveals that differences in program availability, design and benefit exist within states individually and across the nation. The Department should take the lead in efforts at standardization and uniformity of caregiver programs and services. Such an undertaking will require inter- and intra-state agreement about mission and philosophy, eligibility criteria, funding priorities, program design, and administration of services.

Recommendation 06-19:

  • The Secretary should require the Administration on Aging, the Center for Medicare and Medicaid Services and the Health Resources and Services Administration programs to capture rural-specific data.

The Committee recommends that all survey instruments within HHS be required to collect and evaluate data in a way which identifies rural characteristics. The NAPIS database, specifically, should begin to capture data on rural caregivers. The Committee is aware that no Department-wide definition of "rural" exists. As long as this situation persists, researchers, program administrators and policy-makers will be unable to truly determine and report the extent of rural need because the key federal organizations do not evaluate programs with a uniform rural geographic standard.

The health-related components of HHS are slowly changing their data structures to illuminate urban/rural differences. The Committee would encourage the Secretary to require that all survey instruments within the Department collect, evaluate and report data in a geographically-specific way which identifies rural characteristics. Such standardization of efforts could be based on previous successes such as those realized in the Health Resources and Services Administration's Maternal and Child Health Bureau.

Recommendation 06-20:

  • The Secretary should authorize a study to determine adequate funding requirements for rural family caregiver services under the NFCSP.

The Committee commends the work of the NFCSP and recognizes its success, however, the Committee realizes that the program is in great need of enhanced funding. Since it was authorized, the range and scope of NFCSP services have expanded but program funding, though increased annually, has not kept pace. Gaps in service and variation of availability of caregiver services in rural areas across states remain problematic due to inadequate funding.

Recommendation 06-21:

  • The Secretary should expand eligibility for Family Caregiver Support services to include persons 40 and older.

In recognition of the growing contingent of younger caregivers, the Department should work to lower the eligibility age from 60 to 50 and older.

Recommendation 06-22:

  • The Secretary should ensure that best practices in rural family caregiving be identified, studied, and publicized in a number of areas.

The NFCS programs should specifically identify and promote rural best practices. In addition, rural best practice models for state home-based family caregiver waiver programs should also be widely distributed. The Florida legislature is considering a bill (S.B. 88 & H.B. 49) to promote best practices among informal caregivers. The legislation under consideration promotes caregiving as a non-licensed paraprofessional activity and encourages the use of caregiving best practices. The bill would also create the Florida Caregiver Institute, an independent not-for-profit corporation which would develop policy recommendations to improve the skills and availability of direct care workers. The Secretary should establish a working group to consider piloting this work in other States.

In addition, the Secretary could use the Alzheimer's Disease Demonstration Grant program a successful model which encourages the development of best practices models that can be replicated in underserved areas, particularly minority and rural communities, in all 50 states.

Recommendation 06-23:

  • The Secretary should encourage better assessment of rural caregiver needs as part of the NFCS program.

Caregiver assessment was identified in the 50-State Study as one of the top five needed technical assistance and training areas. Screening of caregivers should be done in the primary care setting as it has been shown that early assessment of caregivers needs helps prevent institutionalization of the care receiver upon crisis.

Recommendation 06-24:

  • The Secretary should create a prominent, national social marketing campaign on rural caregiving.

The Department's Administration on Aging should oversee a social marketing campaign to educate rural Americans about the difficult role of caregivers and the family caregiver support programs available to them. This campaign must use plain, easily understood language.

Recommendation 06-25:

  • The Secretary should continue to work to eliminate the persistent health and human services workforce shortage in rural areas.

The need for more providers and limited access to services in rural areas were cited as two of the top five needs listed in the 50-State Study.

Recommendation 06-26:

  • The Secretary should establish a research grant program to study the rural application and impact of the five required NFCSP service areas.

Recommendation 06-27:

  • The Secretary should lower the match requirement for the Title III E program from 25 percent to 15 percent, thus aligning it with the match required of other AoA programs.

Recommendation 06-28:

  • The Secretary should consider whether centralizing State Unit and Area Agency on Aging services is an effective model for rural states.

The Committee observed during its site visits that the centralized structure of the AoA administrative functions is problematic, especially in large rural states. The Committee discovered that uneven information distribution with in the State caused poor collaboration among local and state service providers. Committee members saw first hand, some of the short comings of centralization, for example, local program directors being unaware of the other state and local services that are available to their clients. The Committee concludes that the AAAs must be locally situated to be most effective. A single State office in the absence of local AAAs is too far removed from local issues, especially in geographically large rural states.

Recommendation 06-29:

  • The Secretary should encourage more research on the links between caregiver stress and the consequence of poorer health among rural caregivers.

The impact of providing long-term home care to loved ones is immensely debilitating to the caregiver. Isolation, resentment, guilt, anger, financial difficulties in addition to missed work, all plague the caregiver. One out of three caregivers reports their own health to be fair or poor. Research shows that informal caregivers suffer from high levels of stress, burnout, and insomnia and are more likely to use psychotropic drugs. However, this research does not identify differences between the stresses of rural caregivers as compared to their urban counterparts.

2005 RECOMMENDATIONS

Recommendation 05-1: Create a Web Resource Page for "Models that Work" for Collaborations

The Federal Office of Rural Health Policy (ORHP) should build this recommendation into it cooperative agreement with the Rural Assistance Center (RAC). A special page should be built that is devoted to describing successful rural-based collaborations and that can be accessed in one step from the home page of the RAC Web site. The funding to RAC should support a reporting function to collect and present information regarding those collaborations.

Recommendation 05-2: Support Research that Specify Opportunities and Barriers to Collaboration

The Federal Office of Rural Health Policy should dedicate a portion of its research budget to further specify opportunities for and barriers to collaboration, funding activity either through its research centers or its solicitation of independent research proposals. Researchers should develop models that explain reasons collaborations are successful, with success being defined, in part, as long-term sustainability. Research findings should identify barriers to successful collaborations as well as community, Tribal, State and Federal actions that facilitate successful collaborations.

Recommendation 05-3: Support Leadership Development in Rural Communities

The Secretary should instruct all agencies with programs support local service delivery to include funds for leadership development in their grant-making portfolios. The Federal Office of Rural Health Policy program for rural leaders should be continued. The Secretary should consider supporting regional leadership academies by combining current programs from separate entities in HHS. The Secretary should encourage private foundations to expand their efforts to train future leaders. The Nebraska Community Foundation is one example of the important and crucial role a foundation can play in fostering leadership development in rural areas.

Recommendation 05-4: Require Grant Recipients Engaged in Direct Delivery of Services to Demonstrate an Effect on Community Development

The Secretary should require that all grant applications in program supporting service delivery in rural areas include an analysis of how the program will relate to broad-based efforts in community development. CREATE, in Mississippi, is measuring its success based on community indicators, such as the economy, education, public safety, social environment, health, housing and infrastructure.

Recommendation 05-5: Increase Support for Medical Schools that Have Distinct Program and a Proven Track Record for Training Physicians to Practice Obstetrics in Rural Areas

An increased supply of rural physicians trained in obstetrics is essential to sustaining these services in hundreds of small rural communities. The Secretary should increase or reallocate funds under Title VII of the Public Health Service Act to target medical schools that train obstetricians and family physicians for rural practice, especially those that provide residents in family medicine with training in high-risk obstetrics. Family physicians are more likely to practice in rural areas than obstetricians, and programs that prepare them for high-risk obstetrics must be supported. Support for the training of CNMs and nurse practitioners who are interested in obstetrics also should be increased.

Recommendation 05-6: Make the Recruitment and Placement of Physicians Trained in Obstetrics a Major Goal for the National Health Service Corps

The Committee believes that the National Health Service Corps must focus more attention on rural areas that lack adequate obstetrics services. Recruitment efforts should focus on physicians who are trained in obstetrics and who are willing to deliver babies in the communities they serve. Additional incentives for new physicians are also needed and should be explored. One approach would be to pay the malpractice insurance costs of new Corps physicians who are fulfilling their obligation in areas with measurable and pronounced shortages of obstetrics care providers.

Recommendation 05-7: Support Program to Create Hospital and Physician Networks that will Sustain and Improve Access to Obstetric Services in Rural Areas

There are several existing grant programs in the Department (Healthy Community Access, Rural Network Development, Rural Hospital Flexibility Grants) that should be used to promote the development of hospital and physician networks in obstetrics care. The Committee believes that obstetrics services in many small rural hospitals and physician practices will be unsustainable over time, given the issues discussed in this report. Providers need encouragement and incentives to find more sustainable and efficient strategies for maintaining access to obstetrics care. Existing grant programs should be more aggressive in encouraging and funding grant applications that address the problem.

Recommendation 05-8: Promote the Development of Team Approaches to Obstetrics Care Involving Physicians, Nurse Practitioners, Certified Nurse Midwives and Other Non-Physician Providers

The Secretary should use this demonstration authority to develop a model program that supports regional approaches to improving access to obstetrics care in rural communities through networking and an emphasis on using interdisciplinary teams in several rural areas as a pilot project.

Recommendation 05-9: Increase Medicaid Payments for Obstetrics Services

The Committee understands that Medicaid payments for services are determined by the States; however, the Secretary does have authority over State Medicaid waivers that affect the scope of services that Medicaid provides and populations served. The Secretary should explore ways in which the waiver approval process could be sued to provide incentives for the States to increase payments and improve access to obstetrics services in rural areas.

Recommendation 05-10: Address the Malpractice Insurance Issue by Supporting Legislation that will Extend the Federal Tort Claims Act to Rural Obstetrics Providers in Federally Designated Shortage Areas

The malpractice insurance program for Federally Qualified Health Centers and Free Clinics should be extended to cover rural hospitals and physicians providing obstetrics services in underserved rural areas. The Committee believes that the current system for designating Health Professional Shortage Areas (HPSAs) may not be able to identify the rural areas most underserved by obstetrics services. Data are available to identify rural areas that have the lowest ratios of obstetrics providers to women of childbearing age, which may be a more effective access measure. Another approach would be to give greater weight to obstetrics services as a variable used in the HPSA designation process. The method used must be limited to those rural areas where access to obstetrics care is mot severely limited by provider shortages.

Recommendation 05-11: Encourage the State to Revise Their Medicaid Policy to Remove Any References of Obesity Not Being an Illness

The Department should take the lead in working with the States to classify obesity as an illness and cover procedures related to treatment of obesity. This change is even more critical in Medicaid than it is in Medicare since it will allow health care providers to aggressively treat those with obesity and it will potentially help patients avoid more serious obesity-related health complications in the future.

Recommendation 05-12: Make Refinements to the HealthierUS Community Grant Program so that Rural Concerns can be more Thoroughly Represented

The Committee commends the Secretary for launching the Steps to a HealthierUS community grant program, especially since it includes rural participation. However, the Committee is also hopeful that refinements will be made to assure that the concerns identified with respect to rural representation are addressed. Additional opportunities for direct granting to rural communities would be helpful, as many States did not include rural communities within their grants.

Recommendation 05-13: Ensure that the Next Publication of the CDC Chartbook includes more Rural-Specific Data and that Other, Future Publications Include References to Rural

The Committee commends the efforts the CDC has made to conduct studies that include rural areas. These studies have consistently shown that rural areas have higher rates of obesity and are, in general, less healthy than urban or suburban areas. The Committee would encourage the publication of a new CDC Chartbook to provide current, more rural-specific items compared to the previous 2001 publication, and to continue the inclusion of rural areas in its other studies. In addition, the Committee encourages NIH and the CDC to include studies of rural-specific prevention and intervention.

Recommendation 05-14: Ensure that Rural Residents are Seen as a Separate and Unique Segment of the Population in Funding, Research and Data Collection

The Committee commends the efforts CDC has made to conduct studies that include rural areas. These studies have consistently shown that rural areas have higher rates of obesity and are, in general, less healthy than urban or suburban areas. The Committee would encourage the publication of a new Rural-Urban Chartbook by no later than 2006 t provide current, more rural specific items compared to the previous 2001 publication, and to continue the inclusion of rural areas in its other studies. In addition, the Committee encourages the NIH and the CDC to include studies of rural-specific prevention and intervention.

Recommendation 05-15: Provide targeted technical assistance to States to Examine to How to Address the Transportation, Child Care, and Employment Needs of Rural TANF recipients

The Secretary should work with the Administration for Children and Families (ACF) to provide targeted technical assistance that would encourage States to address the transportation, child care, and employment and training needs of rural TANF recipients.

Recommendation 05-16: Emphasize Collaboration and Encourage States to Utilize Best Practices in Efforts to Service Rural TANF Clients

The Secretary should emphasize collaboration and encourage States to utilize best practices, including those identified by ACF, particularly in efforts to serve rural clients.

Recommendation 05-17: Strengthen Department's Leadership and Work with Federal Partners

The Secretary should strengthen the Department's leadership among Federal partnerships and collaborations.

The Secretary should propose legislation to the Congress that would establish a Medicare inpatient payment floor for rural hospitals with less than 50 acute care beds and for Sole Community Hospitals (SCHs). The payment floor would be based on an individual hospital's current cost experience. The legislation would be effective for hospital cost reporting periods beginning on or after October 1, 1989, and end at such time that special Medicare payment provisions for essential access facilities are implemented. For the purposes of this legislation, acute care beds include swing beds, but exclude licensed beds for long- term care and newborn bassinets.

2004 RECOMMENDATIONS

Recommendation 04-1: Allow Behavioral Health Providers to Provide Behavioral Health Services as Qualified Mental Health Care Service Providers

The Secretary should work with the Congress to amend Section 1861(s) (2) of the Social Security Act to authorize State-licensed marriage and family therapists, licensed professional counselors and other behavioral health providers to provide behavioral health services as qualified mental health care service providers. The Secretary should also work with Congress to authorize Medicare payments for those services by amending Section 1833(a)(1) of the Social Security Act, as needed, to ensure that payment.

Recommendation 04-2: Broaden the Definition of Originating Sites for Telehealth Services

The Secretary should seek to broaden the definition of originating sites for telehealth services to include private physician offices under Title XVIII of the Social Security Act and ensure that all Medicare-eligible providers can offer mental health services via telehealth consultation.

Recommendation 04-3: Identify States with Model Licensure Laws and Scope of Practice Acts for Non-Physician Behavioral Health Providers

The Secretary, under the auspices of Title XVIII and Title IX of the Social Security Act, should work to identify States with model licensure laws and scope of practice acts for non-physician behavioral health providers. The Secretary should share them with other States and policymakers in order to facilitate similar practices in rural areas of the country. The Secretary should also work with States and behavioral health professional associations to increase flexibility in State requirements for supervision of limited license behavioral health providers that would allow more rural training, either in person or through supervision delivered via telehealth technologies.

Recommendation 04-4: Increase Funding for the Quentin N. Burdick Program for Rural Interdisciplinary Training

The Secretary should support increased funding for the Quentin N. Burdick Program for Rural Interdisciplinary Training. The program is authorized under Title VII, Section 754 of the Public Health Service Act. Grants awarded through the program can support innovative models and demonstrations of interdisciplinary care in rural areas. The program is uniquely suited to the support of programs that foster the development of integrated primary care and behavioral health care delivery systems.

Recommendation 04-5: Increase Funding for the Graduate Psychology Education Program

The Secretary should support increased funding for the Graduate Psychology Education Program authorized under Title VII, Section 755(b)(1)(J), of the Public Health Service Act. This program supports grants to schools accredited by the American Psychological Association to help them plan and operate programs that foster an integrated approach to health care service and that train psychologists to work in underserved areas. The program was not included in the President's budget for 2005.

Recommendation 04-6: Increase Support for Scholarships and Loan Repayment for Behavioral Health Care Providers

The Secretary should provide increased support of scholarships and loan repayment for behavioral health care providers under Section 331 of the Public Health Service Act.

Recommendation 04-7: Amend Title XVIII and Title XIX of the Social Security Act to Require Parity in Payments

The Secretary should work with the Congress to amend Title XVIII and Title XIX of the Social Security Act to require parity in payments and the resulting co-payments for mental health care services under Medicare and Medicaid.

Recommendation 04-8: Clarify that Critical Access Hospitals Can Provide Mental Health Services

The Secretary should work with the Centers for Medicare and Medicaid Services in administration of Section 1834(g) of the Social Security Act to clarify that Critical Access Hospitals can and should have the flexibility to provide mental health services as dictated by community need within the normal protections for patients.

Recommendation 04-9: Increase the Federal Matching Funds for Oral Health Services by Five to Ten Percent

The Secretary, under Title XIX of the Social Security Act, should authorize a five to ten percent increase in Federal matching funds for oral health services. This increased match would encourage States to expand dental coverage and provide dental reimbursements at a level sufficient to attract additional providers to the Medicaid program.

Recommendation 04-10: Increase Funding for the Quentin N. Burdick Program for Rural Interdisciplinary Training, Health Careers Opportunity Program and Centers for Excellence Program

The Secretary should work with the Office of Management and Budget (OMB) and Congress to seek increased funding for the Quentin N. Burdick Program for Rural Interdisciplinary Training, authorized by Title VII, Section 754 of the Public Health Service Act. Priority should be given to Quentin N. Burdick applicants whose programs include dentists or dental hygienists. The Secretary should also attempt to obtain more funding for the Health Careers Opportunity Program (HCOP) and Centers for Excellence (COE) Program, authorized by Title VII, Sections 739 and 736, respectively. The additional funds should be used to increase the number of dental schools receiving HCOP and COE grants. This would provide more support for dental schools that seek to recruit additional minority and disadvantaged individuals and to expose students to practice opportunities in underserved communities.

Recommendation 04-11: Ensure Adequate Funding for the National Health Service Corps

The Secretary should ensure adequate funding for the National Health Service Corps under Section 331 of the Public Health Service Act and should encourage it to pursue innovative strategies that will attract more dentists and dental hygienists to take part in the program.

Recommendation 04-12: Seek Additional Funding for the Recruitment and Loan Repayment of Indian Health Service Dentists and Hygienists

The Secretary should work with the Office of Management and Budget to seek additional funding for the recruitment and loan repayment of Indian Health Service dentists and hygienists and to ensure the Indian Health Service dental facilities and equipment are adequate to meet the demand for services.

Recommendation 04-13: Establish a Program that would Fund the Fluoridation of Small Community Water Supplies

The Secretary should work with the Office of Management and Budget and the Congress to explore the establishment of a new categorical grant program that would provide funding to States for the fluoridation of small community water supplies and provide ongoing technical assistance and maintenance for such systems.

Recommendation 04-14: Establish State Dental Offices in All 50 States and U.S. Territories

The Secretary should work with Congress and the Office of Management and Budget to establish a Federal-State partnership that is modeled after the State Offices of Rural Health Grant Program. This partnership would support the establishment of State Dental Offices with full-time directors in all 50 States and U.S. territories. Since the majority of oral health policy issues are under State jurisdiction, it is important to ensure that States have an adequate infrastructure to address pressing oral health issues and coordinate Statewide oral health initiatives.

Recommendation 04-15: Direct the National Institutes of Health and the Agency for Healthcare Research and Quality to Conduct Studies on Oral Health Disparities

The Secretary should direct the National Institute for Dental and Craniofacial Research and the Agency for Healthcare Research and Quality to conduct a series of studies on rural oral health disparities. These studies will provide additional information on the oral health status of rural residents and will provide critical information that will be used to guide evidence-based policymaking.

Recommendation 04-16: Develop a Demonstration Program to Explore Innovative Approaches to Providing Transportation to the Rural Elderly

The Secretary should develop a demonstration project through Section 301 of the Public Health Service Act that would explore innovative approaches to providing transportation to rural elderly and would examine current Federal and State regulations and opportunities to use existing systems operated through Area Agency on Aging programs, Head Start and State and local transportation systems such as school buses.

Recommendation 04-17: Support Research that Examines How Rural Seniors Access the Services Provided under the Older Americans Act

The Secretary should support research that examines how rural seniors access key services provided under the Older Americans Act to determine if there are any service gaps particular to rural communities.

Recommendation 04-18: Track Expenditures in the National Family Caregivers Support Program

The Secretary should work with the Agency on Aging to track expenditures in the National Family Caregivers Support Program to determine how much of the funding goes to rural communities.

2003 RECOMMENDATIONS

Recommendation 03-1: Promote Demonstrations through CMS that Examines How Reimbursement can Promote Quality Improvement

The Secretary should work with CMS to promote demonstrations that examine how reimbursement might be used to promote quality improvement in the rural setting.

Recommendation 03-2: Increase Funding for State Survey and Certification Activities

The Secretary should increase funding for state survey and certification activities. The survey and certification agencies are consistently under funded and this has a disproportionate effect on rural providers given their heavier reliance on using the survey and certification program and less reliance on accreditation compared to their urban counterparts.

Recommendation 03-3: Amend the Seventh Scope of Work for the Quality Improvement Program

The Secretary should amend the Seventh Scope of Work for the Quality Improvement Program to make this program more relevant for rural communities. This would include creating a stand-alone task focusing on rural health. It would also include a new evaluation methodology for reviewing the work of the Quality Improvement Organizations that includes more localized measures of areas with populations that suffer health disparities. The sole reliance on measures of state-wide improvement acts as a disincentive for working with harder-to-reach populations.

Recommendation 03-4: Increase Funding for the Quality Improvement Program

The Secretary should work with the Office of Management and Budget to increase funding for the Quality Improvement Organizations to encourage Quality Improvement Organizations to reach out more meaningfully to rural communities to rural communities and to help providers prepare for public reporting in hospital, home health and individual ambulatory provider settings.

Recommendation 03-5: Solicit Input from Rural Health Care Providers in Identifying Measures for Public Reporting

The Secretary should solicit (via Federal Register notice) input from rural health care entities in identifying which measures shall be used for public reporting for all healthcare providers and include not only outcome measures but also process measures. This activity should promote appropriate benchmarking that compares organizations with similar characteristics such as geography, size, and volume. This is very important as outcome measures require statistical significance frequently not available in a typical rural facility due to lower volumes or that may not be appropriate for rural facilities.

Recommendation 03-6: Ensure that Research Translated into Practice Include a Focus on Rural Health Care

The Secretary should work with AHRQ and NIH to ensure that each Agency's efforts to translate research to practice include a focus on rural health care quality issues as well as translation of findings to rural practice, dissemination and adoption of recommendations. AHRQ and NIH should also identify and examine "models that work" in rural areas.

Recommendation 03-7: Fund the new Small Health Care Provider Quality Improvement Program

The Secretary should work with the Congress to fund the new Small Health Care Provider Quality Improvement Program authorized in Public Law 107-251.

Recommendation 03-8: Support Re-Authorization of the Medicare Rural Hospital Flexibility Grant Program

The Secretary should support re-authorization of the Medicare Rural Hospital Flexibility Grant program in a manner that strengthens the program's orientation to promoting quality in Critical Access Hospitals.

2002 RECOMMENDATIONS

Recommendation 02-1: Require a Uniform Medicare Disproportionate Share Hospital Adjustment Policy

The Secretary should work with Congress to require the use of a uniform Medicare Disproportionate Share Hospital adjustment policy that treats all hospitals the same regardless of their urban or rural location.

Recommendation 02-2: Raise the Cap on Medicare Disproportionate Hospital Payments

The Secretary should work with Congress to raise the cap on Medicare Disproportionate Share Hospital payments for rural hospitals to an appropriate level that provides equity for rural hospitals.

Recommendation 02-3: Expand Options for Using Medicaid Disproportionate Share Hospital Payments for Eligible Rural Hospitals

The Secretary should work with States to expand options for using Medicaid Disproportionate Share Hospital Payments for eligible rural hospitals, including the ability to upgrade the financial stability of rural hospitals or to assist rural hospitals to develop physician or clinic networks.

Recommendation 02-4: Ensure Re-Authorization and Continued Funding of the Rural Hospital Flexibility Grant Program

The Secretary should work with Congress to ensure re-authorization and continued funding of the Medicare Rural Hospital Flexibility Grant Program, which is up for re-authorization in FY 2002.

Recommendation 02-5: Eliminate the Medicare Per-Visit Payment Cap

The Secretary should work with Congress to eliminate any financial challenges to FQHC's providing care to the uninsured by eliminating the Medicare per-visit payment cap.

Recommendation 02-6: Increase Access to Capital and Expand Eligible Uses of Grant Funds for Rural Providers

The Secretary should work with Congress to increase access to capital and to expand eligible uses of grant funds to include construction, renovation, and modernization of health center facilities.

Recommendation 02-7: Increase Federally Qualified Health Centers in Rural and Frontier Areas

The Secretary should encourage the development of criteria that will increase the number of FQHC sites in rural and frontier areas.

Recommendation 02-8: Increase Rural Health Clinics Payment Limit

The Secretary should work with Congress to increase the RHC payment limit under section 1833 (f) of the Act to more closely correspond with the increase in payments for primary care services resulting from the full transition to the physician fee schedule.

Recommendation 02-9: Amend Reimbursement Methodology for Rural Health Clinics

The Secretary should amend the reimbursement methodology for Rural Health Clinics (RHCs) payment so that RHCs that 1) are non-profit, 2) see all patients regardless of ability to pay, and 3) elect to use a sliding fee scale do not have to count uninsured patients in determining the aggregate number of patients seen for calculation of the per-visit payment rate.

Recommendation 02-10: Work with Congress to Conduct Strong Oversight of the Implementation of the Medicaid PPS

The Secretary should work with Congress to conduct strong, ongoing oversight of the implementation of the Medicaid PPS to ensure that States comply with requirements in the Federal PPS statute and that access to FQHC and RHC services are protected.

Recommendation 02-11: Work with Congress to Evaluate the Medicaid PPS to Ensure that FQHCs and RHCs are being Adequately Reimbursed

The Secretary should work with Congress to evaluate the Medicaid PPS to ensure that FQHCs and RHCs are being adequately reimbursed to protect access to care, including access to care for the uninsured. This includes examining whether the Medicare Economic Index (the current measure of inflation used in PPS) is sufficient to protect Medicaid reimbursement for these critical safety next providers.

Recommendation 02-12: Issue an Advisory Letter Disseminating the Legality and Specific Requirements of the Income-Related Sliding Fee Scales

The Secretary should issue an advisory letter that spells out the legality and specific requirements of income-related sliding fee scales and disseminate it widely.

Recommendation 02-13: Support and Enhance the 340B Discount Drug Program

The Secretary should continue to support and enhance the 340B Discount Drug Program and support Medicare reforms that include access to prescription drugs.

Recommendation 02-14: Propose an Increase in Funding for the National Health Service Corps

The Secretary should propose an increase in funding for the National Health Service Corps at levels sufficient to support the multi-year plan to expand health centers and to meet the pressing needs of other rural areas for health professionals.

Recommendation 02-15: Create a Focal Point within the Department to Coordinate the J-1 Visa Waivers

The Secretary should create a focal point within the Department to coordinate the J-1 Visa Waivers issued by all Federal agencies and the communities in which they are placed to ensure that the visa waivers are used to meet patient care needs.

Recommendation 02-16: Consider Allowing HHS to Issue J-1 Visa Waivers for Primary Care Physicians if the USDA Declines to Continue Issuing Those Waivers

The Secretary should consider allowing HHS to issue J-1 Visa Waivers for primary care physicians if the USDA declines to continue issuing those waivers. If USDA continues to offer J-1 Visa Waivers, the Secretary should work with the Congress to re-authorize and expand the scope of the Conrad State 20 program to more adequately meet the primary care needs of rural communities.

Recommendation 02-17: Increase the Amount of Medicare Incentive Payment to 20 Percent

The Secretary should work with the Congress to increase the amount of the Medicare Incentive Payment to 20 percent.

Recommendation 02-18: Allow Nurse Practitioners and Physician Assistants to Qualify for the Medicare Incentive Payments

The Secretary should work with the Congress to allow nurse practitioners and physician assistants to qualify for the Medicare Incentive Payments.

Recommendation 02-19: Eliminate Medicare Payments to Urban Specialists

The Secretary should work with Congress to eliminate Medicare Incentive Payments to urban specialists.

Recommendation 02-20: Change the Current Auditing Procedures Used the Medicare Contractors

The Secretary should change the current auditing procedures used by the Medicare Contractors to ensure that providers who claim the Medicare Incentive Payment will not have any greater likelihood of being audited than providers who do not claim the extra payment.

2001 RECOMMENDATIONS

Recommendation 01-1: Evaluate the Need for a Low-Volume Adjustment in Medicare

The Secretary should evaluate the need for a low-volume adjustment within all of the Medicare prospective payment systems.

Recommendation 01-2: Research into the Cost of Providing Care to Medicare Beneficiaries in Rural Areas

The Secretary should promote research into determining the true cost of providing care to Medicare beneficiaries in rural areas that take into account factors related to access, geographic isolation and volume. The results of this research should be used in redesigning the Medicare program to ensure equity of benefits for rural beneficiaries.

Recommendation 01-3: Continue Collecting Data on Occupational Mix

The Secretary should continue collecting data on occupational mix and implement an adjustment to the wage index as soon as possible.

Recommendation 01-4: Collect Wage Data for the Skilled Nursing and Home Health Service Areas

The Secretary should collect wage data for both the skilled nursing and home health service areas and evaluate the impact of constructing an occupational mix adjustment within the wage index for both of these payment systems.

Recommendation 01-5: Refine the Methodology for Determining the Disproportionate Share Adjustment for Hospitals

The Secretary should continue to refine the methodology for the disproportionate share adjustment for hospitals to treat all hospitals equally.

Recommendation 01-6: Develop a Standard Benefit Package for Medicare Beneficiaries

The Secretary should develop a standard benefit package that includes access to a reasonable prescription drug benefit under Medicare fee for service.

Recommendation 01-7: Provide Demonstration Waivers to Rural Communities for Innovative Health Care Models

The Secretary should provide demonstration waivers to rural communities for innovative models that improve access to care and that focus on chronic care, case management, and preventive care.

Recommendation 01-8: Examine Impact of Prospective Payment Systems in Home Health and Skilled Nursing for Medicare Beneficiaries

The Secretary should examine the impact of the new prospective payment systems for home health, skilled nursing, and outpatient services to determine what impact these changes have had on access to care for rural Medicare beneficiaries.

Recommendation 01-9: Monitor the Closures of Skilled Nursing Facilities

The Secretary should monitor the closures of skilled nursing facilities and the impact of moving swing beds under skilled nursing facilities prospective payment to determine the impact on access to care for rural Medicare beneficiaries.

Recommendation 01-10: Ensure Core Services are Available to all Medicare beneficiaries

The Secretary should ensure that the core services (primary, preventive and chronic care management) and the full continuum of care are appropriately available for all Medicare beneficiaries.

Recommendation 01-11: Amend the Medicare Conditions of Participation

The Secretary should amend the Medicare Conditions of Participation. Also, the Secretary should provide resources through entities such as the Peer Review Organizations to develop quality improvement tools to fit the rural environment with appropriate flexibility and an emphasis on outcome standards.

Recommendation 01-12: Encourage Development of Appropriate Quality Measures for Rural Areas

The Secretary should encourage the development of appropriate measures that take into account a rural environment that features low volume of primary care and ambulatory services.

Recommendation 01-13: Encourage More Training of Health Professionals for Rural Communities

In recognizing the link between quality health care and the workforce, the Committee recommends that the Secretary encourage more training of health professionals for rural communities to ensure access to high-quality care for Medicare beneficiaries.

Recommendation 01-14: Support Research Related to Volume and Outcome for Primary and Ambulatory Care

The Secretary should support research that looks into issues related to volume and outcome in the rural context based on primary and ambulatory care.

Recommendation 01-15: Support Changes to Medicare Policy to Provide Exceptions for Rural Training Programs

The Secretary should support changes to Medicare policy to provide exceptions to the residency cap for rural training programs and provide direct and indirect GME funding for these programs.

Recommendation 01-16: Promote More Community-Based Trainings

The Secretary should support changes to Medicare policy that promote more community-based training of residents.

Recommendation 01-17: Require Training Programs that Receive Graduate Medical Education Funding to Have Rural Training Sites

The Secretary should support changes to Medicare policy so that residency programs receiving GME funding would be required to provide training in rural settings.

Recommendation 01-18: Support Rural Graduate Medical Education Demonstrations

The Secretary should support Rural GME demonstration projects that address workforce shortages in rural areas.

Recommendation 01-19: Promote Rural Training in Title VII and Title VIII Programs

The Secretary should expand the scope and focus Title VII and Title VIII training grants to promote more rural training.

Recommendation 01-20: Increase Funding for the National Health Service Corps to Promote More Clinicians Serving in Rural Areas

The Secretary should increase funding for the National Health Service Corps to promote more placements of Corps clinicians in underserved rural areas to serve Medicare and Medicaid beneficiaries.

Recommendation 01-21: Protect and Strengthen the Medicare Fee-For-Service Program

The Secretary should protect and strengthen the Medicare Fee-For-Service delivery option under any redesign or reform of the Medicare program. This should include an acknowledgment that Medicare + Choice in its present form is not a viable option for bringing managed care and equity of benefits to rural beneficiaries. Consequently, the Secretary should recognize that fee-for-service delivery will continue to be the dominant service delivery mechanism for rural Medicare beneficiaries.

Recommendation 01-22: Ensure that Rural Health Care Providers are Kept in Mind during any Redesign of the Medicare Program

The Secretary should ensure protections for key rural service providers (critical access hospitals, sole community hospitals, Medicare-dependent hospitals, rural referral centers, rural health clinics and federally qualified health centers), in any redesign of the Medicare program to ensure access to care for rural beneficiaries.

Recommendation 01-23: Explore Potential New Service Delivery Models for Rural Areas

The Secretary should explore the development of new service delivery models for rural beneficiaries that recognize the special circumstances of providing care in sparsely populated rural areas. Options such as coordinated care, primary care case-management and other forms of partial risk or capitation that emphasize local control and flexibility should be explored.

2000 RECOMMENDATIONS

Recommendation 00-1: Improve Coordination of Federal Public Health Activities

The Secretary should seek an Executive Order for the creation of a Federal Interagency Public Health Coordination Committee comprised of senior representatives from the various public health agencies and federal departments. The committee would study current efforts by each of the Federal Agencies involved in public health activities overall while evaluating ways to integrate funding stream to benefit rural communities in the areas of leadership development, workforce development, viability of the safety net, impact of managed care, and telecommunications. The newly formed committee would produce an annual report based on their studies. This committee would include appointed representatives from the Department of Health and Human Services, the Department of Agriculture, the Environmental Protection Agency, the Department of Commerce, the Department of Veteran Affairs, the Department of Labor, the Department of Education, the Department of Housing and Urban Development, the Department of Transportation, the Department of Defense and any other relevant Federal agencies.


Recommendation 00-2: Create a Dedicated Funding Stream for Public Health Activities

The Secretary should support the development of a dedicated funding stream for public health infrastructure activities with assurances that funding is equitably distributed among rural and urban health departments at the local level.

1999 RECOMMENDATIONS

Recommendation 99-1: Incorporate an occupational mix adjustment into the Wage Index

The Committee recommends that the Secretary incorporate an occupational mix adjustment into the calculation of the Medicare Hospital Wage Index. This will require the Department to begin gathering data on wage and hours by occupational category in the Medicare cost reports or by obtaining it from the Bureau of Labor Statistics.

Recommendation 99-2: Develop Separate Wage Indexes for Sub-Acute Care PPS

The Committee recommends that the Secretary develop separate wage indexes for the prospective payment systems for skilled nursing facilities and home health agencies within three years after these payment systems are in place.

Recommendation 99-3: Remove Teaching Physician Costs from the Wage Index

The Committee recommends that the Secretary remove teaching physician costs from the hospital wage index since these costs are recognized elsewhere in the Medicare system through Graduate Medical Education payments.

Recommendation 99-4: Collect and Evaluate Hospital-Specific Labor Data for the Wage Index

The Committee recommends that the Secretary begin collecting hospital specific wage index market data during the next three years and develop and implement a New Medicare wage index based on hospital-specific labor market areas by FY 2003. The new wage index calculation would base wage-related costs on the costs incurred by neighboring hospitals.

Recommendation 99-5: Low-volume adjustment for the Medicare Outpatient Prospective Payment System for Rural hospitals

The Committee recommends that the Secretary include a low-volume adjustment in the final rule for the Medicare outpatient prospective payment system to compensate rural providers who may be at a disadvantage under the new payment system if they serve low numbers of patients.

Recommendation 99-6: Low-volume adjustment for the Medicare Home Health Prospective Payment System for Rural Providers

The Committee recommends that the Secretary include a low-volume adjustment in the final rule for the Medicare home health prospective payment system to compensate rural providers who may be at a disadvantage under the new payment system if they serve low numbers of patients.

Recommendation 99-7: Low-volume adjustment for the Medicare Skilled Nursing Facility Prospective Payment System for Rural Providers

The Committee recommends that the Secretary include a low-volume adjustment in the Medicare skilled nursing facility payment system to compensate rural providers who may be at a disadvantage under the new payment system if they serve low numbers of patients.

Recommendation 99-8: Low-volume adjustment for the Medicare Ambulance Fee Schedule for Rural Providers

The Committee recommends that the Secretary include a low-volume adjustment in the final rule for the Medicare ambulance fee schedule to compensate rural providers who may be at a disadvantage under the new payment system if they serve low numbers of patients

Recommendation 99-9: Revision of the Medicare Disproportionate Share Payment Adjustment for Rural Hospitals

The Committee recommends that the Secretary revise the formula by which rural hospitals receive disproportionate share payments under the Medicare program to more adequately compensate those rural providers that shoulder a large burden of indigent care.

Recommendation 99-10: Creation of a Rural Hospital Capital Need Loan Program

The Committee recommends that the Secretary to support the creation of a loan program for physical capital needs in licensed acute care rural hospitals that encourages consolidation and coordination of services at the local level.

Recommendation 99-11: Critical Access Hospital Grant Incentives

The Committee recommends that the Secretary give a preference in the reviewing of grant proposals to projects that include a Critical Access Hospitals as a part of the applicant consortia or network under Federal health grants administered by the Department of Health and Human Services.

Recommendation 99-12: Encourage Development of Rural-Specific Quality Standards

The Committee recommends that the Secretary encourage national and state accrediting bodies to examine rural-specific quality issues and work with the Department to develop relevant standards appropriate to the size, setting, and services provided by rural hospitals, health systems, rural provider practices and health plans serving rural areas. The Secretary should also support recognition of these issues by Congressional members and staff.

Recommendation 99-13: Development of Two Sets of Definitions for Rural Areas

The Secretary recommends that the Secretary support the development of two sets of standards for the delineation of metropolitan and nonmetropolitan areas. This would include:

  • A county-based set of standards as OMBs official standards, for statistical reporting purposes and as one option for federal funding programs.
  • A Census tract-based system, to be available as an alternative option for federal funding programs and experimental use for reporting federal statistics.

Recommendation 99-14: Improved Coordination of Federal Public Health Activities

The Committee urges the Secretary to seek an Executive Order for the creation of a Federal Interagency Public Health Coordination Committee comprised of senior representatives from the various public health agencies and federal departments. The committee would produce an annual report (the first of which would be produced within 12 months of the establishment of the Committee). The Committee would study current efforts by each of the Federal Agencies involved in public health activities overall while evaluating ways to integrate funding streams to benefit rural communities in the areas of leadership development, workforce development, viability of the safety net, impact of managed care, and telecommunications.

Recommendation 99-15: Creation of a Dedicated Funding Stream for Public Health Activities

The Committee urges the Secretary to support the development of a dedicated funding stream for public health infrastructure activities with assurances that funding is equitably distributed among rural and urban health departments at the local level.

1998 RECOMMENDATIONS

Recommendation 98-1: Allow Referring Practitioner to Bill For Telehealth Consultations

The Committee recommends that the Secretary ensure that the new regulations for telehealth reimbursement allow a referring practitioner, usually located in a rural area, to bill for a primary care visit on the same day as a video consultation if the primary care visit is the basis of the consultation or was for a medical problem unrelated to the consultation.

Recommendation 98-2: Reimburse for Telehealth Services in All HPSAs

The Committee recommends that the Secretary ensure that the new regulations for telehealth reimbursement interpret "rural health professional shortage" area as being all rural health professional shortage areas, including partial county, whole county and multiple county as well as governor-designated HPSAs. The original legislation did not specify which HPSAs were eligible.

Recommendation 98-3: Base Telehealth Payment on Consultant Setting

The Committee recommends that the Secretary ensure that the new regulations for telehealth reimbursement require that the fee schedule be based on the location of the consultant rather than the referring clinician. The original legislation did not specify whether the payment should be based on the patients location in the rural area or the specialists location, which is usually in an urban area. The urban payment tends to be higher.

Recommendation 98-4: Medicare Adopt a Broad Telehealth Consultation Definition

The Committee Recommends that the Secretary ensure that for the purpose of telemedicine payment, interactive consultation should be interpreted in as broad a manner as is possible. A video interaction between two practitioners where enhanced information is provided by the referring practitioner involving tele-imaging and appropriate medical history, physical findings, and diagnostic/management concerns for use in the consultation should count as an interactive consultation, even if the patient is not present.

Recommendation 98-5: Allow Same-Day Office and Telehealth Consult Billing

The Committee Recommends that the Secretary ensure that the referring provider should be permitted to bill for a primary care visit on the same day as a video consultation if the primary care visit is the basis of the consultation, or was for a medical problem unrelated to the consultation.

Recommendation 98-6: Allow Unbundling of Telehealth Consultation Fee by Participating Providers

The Committee Recommends that the Secretary ensure that the unbundling of the fee between the two providers should be left to the discretion of the two providers (institutions or practitioners) involved and should not be specified in regulation. In the event that it is determined that this is not permissible because of the provisions of other legislation, then the unbundling should be designed to ensure that there are incentives for both the referring and consulting physician to participate in telemedicine consultations.

Recommendation 98-7: Adopt a Broad Definition of Interactive Consultations

The Committee Recommends that the Secretary should support a technical amendment that defines an interactive consultation. For the purpose of telemedicine payment interactive consultation should be interpreted in as broad a manner as is possible to include video interactions between two practitioners in which enhanced information is provided by tele-imaging and appropriate medical history, physical findings and diagnostic/management concerns are provided by the referring practitioner for use in the consultation, even if the patient is not present.

Recommendation 98-8: Allow Nurse Presenters in Medicare Telehealth Consultations

The Committee Recommends that the Secretary support a clarification of the statute that would allow a nurse, under the supervision of a practitioner who is not physically present in the room, to present a patient for a teleconsultation.

Recommendation 98-9: Support Full Funding of the Rural Hospital Flexibility Program

The Committee recommends that the Secretary support a $25 million appropriation to implement the Rural Hospital Flexibility Program and ensure that it is administered by the Office of Rural Health Policy in the Health Resources and Services Administration.

 

Recommendation 98-10: Support a legislative change to 1997 GME Legislation

The Committee recommends that the Secretary support legislation to make technical changes on a series of GME provision from the Balanced Budget Act. Specifically, the legislation should:

  • strike the phrase "in the hospital" from Section 4621 of the Balanced Budget Act of 1997. This section of the BBA establishes a cap on FTEs based on the number of residents who were being trained in the hospital on or shortly before December 31, 1996.
  • allow an increase in a hospitals FTE count if residents are moved from another teaching hospital at the discretion of the hospital accredited to sponsor the residency.
  • permit the expansion of primary care residencies when they are the only program sponsored by the institution.
  • Change the cutoff date to September 1999 to allow recently accredited primary care programs to become established.


 Recommendation 98-11: Include Residency Programs Producing Rural Physicians in the Definition of Serving Rural Areas

The Committee recommends to the Secretary that the Health Care Financing Administration consider not only where a residency program is located but where its graduating physicians practice in their definition of programs servicing rural or rural underserved.

Recommendation 98-12: Assure Access to Mental Health Care in Medicaid Managed Care

The Secretary should assure access to care for rural Medicaid eligible individuals served by managed behavioral health care systems. Toward that end, the Secretary should

  • Actively monitor and evaluate the design and implementation of State Medicaid managed health plans
  • Require that the Health Care Financing Administration, the Substance Abuse and Mental Health Services Administration and the Office of Rural Health Policy work together to address issues related to Medicaid managed behavioral care in rural areas.
  • Increase the supply of training programs and technical assistance materials for States on the design, implementation and oversight of Medicaid managed behavioral health care in rural areas
  • Recommend that States' savings realized through Medicaid behavioral health be reinvested in rural areas with a shortage of behavioral health care.


The Secretary should require States, as part of defining the requirement for the State Request for Proposals, to commission a study of the rural impact of changing Medicaid provision of behavioral care services to delivery by a managed care organization. This commission should:

  • Define adequate rural access
  • Establish a stratified rate structure that takes into account the increased expense of service provision in rural areas.
  • Establish a patient-level database and a process for monitoring the rural impact of providing Medicaid behavioral health care through a managed care organization, and provide for cessation of rural managed care service provision during the implementation period in the event that minimum performance standards are not achieved.


The Secretary should disseminate best practice guidelines for managed behavioral care organizations which recommend that managed care organizations recognize, utilize, and reimburse properly trained primary care providers as essential components of the behavioral health systems, especially in rural areas. These guidelines should ensure that:

  • Managed care organizations recognize and adopt means which improve and integrate behavioral health services such as networking and telehealth technologies.
  • Managed care plans provide access for rural Medicaid eligible individuals and their rural providers to urban specialists
  • Managed care plans provide access for rural Medicaid eligible individuals to appropriate psychopharmacologic agents and monitoring for therapeutic outcomes and side effects
  • Managed care plans coordinate physical and behavioral components of health care

Clinical records and reports must exist to demonstrate the accomplishment of effective coordination of physical and behavioral components of health care of individuals

1997 RECOMMENDATIONS

Recommendation 97-1: Adjustment to the Medicare AAPCC Rate for Managed Care

The Committee urged the Secretary to support changes to the way Medicare pays for managed care services. Medicare pays a set amount for each beneficiary under the Average Adjusted Per Capita Cost (AAPCC) rate. Specifically, the Committee urged a new formula that would allow greater equity of payment between rural and urban areas.

Recommendation 97-2: Imposition of a Cap on Provider-Based RHCs

The Committee urged the Secretary to impose a cap or per-visit limit on provider-based rural health clinics.

1996 RECOMMENDATIONS

Recommendation 96-1: Expand the EACH/RPCH Program Nationwide

The Committee recommends that the Secretary create a national limited service hospital program based on the EACH (Essential Access Community Hospital)/RPCH (Rural Primary Care Hospital) program.

1995 RECOMMENDATIONS

NONE

1994 RECOMMENDATIONS

Recommendation 94-01: Adjust for Occupational Mix in the Medicare Wage Index

The Committee recommends that the Secretary base the wage index, which is used to calculate Medicare hospital payments, on relative labor costs adjusted to a standard occupational mix. To accomplish this, the Secretary should establish a data base for making a labor market specific occupational mix adjustment.

Recommendation 94-02: Payments for Physician Services

The Committee supports the goal of providing incentives for physicians to provide primary care, as contained in the Health Security Act, and urges the Secretary to continue to support such provisions in the absence of national health reform.

Recommendation 94-03: Historical Costs

The Committee recommends that the Secretary consider alternatives to the use of historical costs as the basis for setting fee schedules, premium caps, or any other cost containment mechanisms introduced as part of health care reforms.

Recommendation 94-04: Medicaid Eligibility for Farm Families

The Committee recommends that the Secretary initiate a change in the federal regulations for AFDC (aid to Families with Dependent Children) regarding self-employment income for farmers. AFDC regulations at 45-CFR 233.209(a)(6)(V)(B) require that states include the depreciation of business investments when calculating earned income from self-employment. The Committee recommends that depreciation of farm investments not be included in farmers' incomes when calculating their eligibility for AFDC because AFDC guidelines generally drive a family's eligibility for Medicaid.

Recommendation 94-05: Rural Representation

The Committee recommends that all governing and advisory boards that are established to implement any future health reform be specifically required to have rural representatives among their members. In particular, any alliance (or similar body) that includes a rural population should be required to have substantial rural representation on its governing board and professional advisory board. In addition, any requirements for these boards to consult with outside interest should include a requirement to consult with individuals and organizations representing rural interests.

Recommendation 94-06: Technical Assistance Programs

The Committee recommends that the Secretary develop technical assistance programs to strengthen rural health care delivery systems and prepare rural areas for health care reforms.

Recommendation 94-07: Antitrust

The Committee recommends that the Secretary, in conjunction with the Department of Justice and the Federal Trade Commission, use the federal Office of Rural Health Policy (or any other appropriate office) and the State Offices of Rural Health to educate rural providers and health professionals about antitrust aspects of developing alternative health delivery systems.

Recommendation 94-08: Telemedicine Pilot Projects

The Committee endorses the Secretary's current efforts to evaluate and test payment methodologies for telemedicine. The Committee recommends that additional pilot projects be established within the next fiscal year to test payment methodologies and collect data on costs, utilization, outcomes, provider and patient satisfaction, etc. The pilot projects should be non-proprietary, open architecture systems using a variety of telemedicine technologies and configurations. These projects should be evaluated on an ongoing basis with annual reports to the Secretary. After two years, each annual report should include information that will assist the Secretary in developing appropriate payment policies.

Recommendation 94-09: Increasing the Rural Sample of Leading National Health Surveys

The Secretary should increase the rural samples and take other steps to improve the rural analytic capability of two key national health surveys -- the National Medical Expenditure Survey and the National Health Interview Survey. This improved capability is critical to assessing differences in access to health care for citizens living in communities that vary by degree of rurality, for example, by population density and distance to an urban area. In addition, the Secretary should direct the National Center for Health Statistics to explore augmenting the rural sample of the Health and Nutrition Examination Survey.

Recommendation 94-10: Risk Adjustments

The Committee recommends that explicit attention be paid to rural concerns as risk adjustment methodologies are developed in conjunction with health insurance reforms. Such concerns include the lack of good cost data on rural minority populations and occupational illness and injury. The Committee urges the Secretary to consult rural experts, including the Committee, in developing data bases and methodologies for risk adjusters that include rural populations.

Recommendation 94-11: Fair Competition for Rural Grants and Contracts Applicants

The Committee recommends that the Secretary take steps to ensure that grant and contract program announcements issued by the Department do not ignore rural realities and disadvantage rural applicants. The Committee also recommends that the Secretary find additional methods for announcing program opportunities in rural areas, rather that relying exclusively on the Commerce Business Daily and Federal Register.
 

APRIL 1994 RECOMMENDATIONS ON PROPOSED HEALTH SECURITY ACT

Recommendation: Medicare under Health Care Reform

The Committee reiterates recommendation 93-15 from the Sixth Annual Report on Rural Health asking the Secretary to assimilate Medicare beneficiaries into the health alliances of the reformed health care system as quickly as possible.

Recommendation: Medicare Dependent Hospitals

The Committee recommends that the Secretary establish a short-term task force to study the need to continue the Medicare Dependent Hospital program under health care reform.

Recommendation: Migrant Workers

The Committee recommends that the Secretary consider development of separate health alliances for migrant workers in each of the migrant streams.

Recommendation 94-12: Alternative Rural Health Care Delivery Systems

The Committee recommends that the Secretary support legislation to authorize the Health Care Financing Administration (HCFA) to conduct demonstrations of alternative rural health care delivery systems that require waivers of the Medicare conditions of participation for hospitals.

Recommendation 94-13: Health Professions Education

The Committee reiterates the recommendations it made in its Sixth Annual Report on Rural Health addressing health professions education (93-5 to 93-14).

Recommendation 94-14: Tax Incentives for Practitioners in Rural HPSAs and MUAs

The Committee recommends that the Secretary support legislation to provide tax incentives to primary health care practitioners who locate their practices in rural Health Professions Shortage Areas (HPSAs) and Medically Underserved Areas (MUAs). Such incentives should be offered both to new and existing rural practitioners.

Recommendation 94-07: Mental Health and Substance Abuse Services

The Committee recommends that the Secretary support enhanced mental health and substance abuse services.

1993 RECOMMENDATIONS

Recommendation 93-1: Personnel Qualifications for Physician-performed Microscopy

The Secretary should expand the personnel qualifications for physician-performed microscopy procedures to include other primary care practitioners, i.e., nurse practitioners (NPs), clinical nurse specialists (CNSs), physician assistants (Pas), and certified nurse-midwives (CNMs).

Recommendation 93-2: Requirements for General Supervisors of High Complexity Laboratories

The Secretary should extend the grandfathering clause for general supervisor of a high complexity laboratory to all individuals who were qualified, as of February 28, 1992, to serve as the general supervisor of a hospital laboratory under the clinical laboratory requirements published March 14, 1990.

Recommendation 93-3: Designation of Rural Primary Care Hospitals

The Secretary should support legislation authorizing the Secretary to designate Rural Primary Care Hospitals (RPCHs), as defined by law, in communities where hospitals have been closed for more than one year.

Recommendation 93-4: Rural Representation on the Clinical Laboratory Improvement Advisory Committee

The Secretary should appoint a rural representative to the Clinical Laboratory Improvement Advisory Committee (CLIAC).

Recommendation 93-5: National Health Professions Workforce Plan

The Secretary should develop a national health professions workforce plan that specifies goals for the types, specialties, and geographic distribution of health professionals necessary to meet the health care needs of the nation.

Recommendation 93-6: Outcomes-based Funding of Health Professions Education Programs

The Secretary should support legislation to restructure federal funding of education programs for health professionals so the funding decisions are based on the success with which the training programs contribute toward achieving the goals of the health professions workforce plan.

Recommendation 93-7: All Payers Contribute to Health Professions Education

The Secretary should support legislation requiring all health care payers to participate in funding health professions education.

Recommendation 93-8: Training in a Variety of Settings

The Secretary should support legislation to make health professional education funding available to health professional and residency programs in varied settings, not just those owned or operated by a hospital.

Recommendation 93-9: Rural Training Sites

The Secretary should support the development of rural practice sites as training sites for both undergraduate and graduate health professional training.

Recommendation 93-10: Interdisciplinary Training Programs

The Secretary should encourage the development of interdisciplinary training programs

Recommendation 93-11: Train Local Health Care Workers

The Secretary should develop initiatives to broaden access and innovation in health care delivery by supporting local programs that utilize indigenous community workers and paraprofessionals as essential members of community health care delivery teams.

Recommendation 93-12: Broaden use of Medicare Graduate Medical Education Dollars

The Secretary should support legislation to modify the Medicare payment provisions for graduate medical education to provide funding for undergraduate and graduate training of physicians and other health care professionals.

Recommendation 93-13: Medicare Payment for Non-hospital Based Training

The Secretary should support legislation to provide Medicare funding for training in varied settings, not just those owned or operated by a hospital.

Recommendation 93-14: Align Payment Incentives with Educational Incentives

The Secretary should support, both through policy development and legislation, a restructuring of the Medicare physician payment system so it contributes toward achieving the goals of the health professions workforce plan.

Recommendation 93-15: Assimilate Medicare Beneficiaries into the Health Alliances (repeated in April 1994)

The Secretary should support legislation to assimilate Medicare beneficiaries into the health alliances of the reformed health care system as quickly as possible.

Recommendation 93-16: Consider Rural Needs in Developing Mental Health and Substance Abuse Benefits under Health Care Reform

The Secretary should consider the special needs of rural areas in the further development of mental health and substance abuse benefits under health care reform, and the need to improve access to these services in rural areas. The Committee recommends several general principles to be considered in meeting the needs of rural areas.

Recommendation 93-17: National Plan for Mental Health Professionals in Rural Areas

The Secretary should direct the Bureau of Health Professions to develop and implement (in collaboration with the National Association of State Mental Health Program Directors, the Center for Mental Health Services, and the Office of Rural Health Policy) a national plan to respond to the severe shortage of mental health professionals in rural areas.

Recommendation 93-18: Substance Abuse and Mental Health Services Administration (SAMHSA) Reauthorization Act

The Secretary should support the Center for Mental Health Services, the Center for Substance Abuse Treatment, and the Center for Substance Abuse Prevention in developing the capabilities required to effectively carry out their respective missions as stated in P.L. 102-321 (the SAMHSA Reauthorization Act) in ways that are responsive to the needs and concerns of rural areas and populations. In responding to this recommendation, each Center should:

  • establish a least one full-time position devoted to ensuring that rural interests are taken into account in national mental health and substance abuse public policy;
  • create a coordinated and focused rural technical assistance capacity; and
  • ensure that their statistical and analytic reports describe, in comparative fashion, the full range of variation by setting (metropolitan, suburban, rural, small town, frontier) and region in the delivery of mental health and substance abuse services.
Recommendation 93-19: Technical Assistance to Integrate Mental Health and Substance Abuse Services with other Rural Health Care Services

The Secretary should direct the Substance Abuse and Mental Health Services Administration to develop technical assistance programs to integrate mental health and substance abuse service with "generic" rural service delivery systems (i.e., primary health care, education, aging, developmental disabilities, criminal justice, etc.) and increase the capacity of these systems to meet the needs of their clients with mental health and substance abuse problems.

Recommendation 93-20: Equal Access to Federal Funding for Mental Health and Substance Abuse Services

The Secretary should support the development of new ways to ensure that rural areas and populations have equal access to federal funding and support in mental health and substance abuse. Specifically, the Secretary should:

  • should increased mental health and substance abuse block grant funding with a mandate that at least 25% of these funds be expended in rural areas in service to rural populations, and
  • create a task force of Public Health Service officials and rural service providers to study and recommend new ways that federal support can be make available to rural and frontier areas.

Recommendation 93-21: Rural Parent Education and Support Program

The Secretary should establish a demonstration grant program to rural communities to provide early parenting education and support to first-time parents. the demonstration program should include a three-pronged strategy that would involve the development of local family resource centers, community-based assessment and home visitation services, and the development of networks and referral agreements between related programs and services.

1992 RECOMMENDATIONS

Recommendation 92-1: Rural Hospital Transition Grant Program

The Secretary should support legislation to continue the Rural Hospital Transition Grant Program.

Recommendation 92-2: Essential Access Community Hospital/Rural Primary Care Hospital (EACH/RPCH) Program

The Secretary should convene a meeting of the key participants in the EACH/RPCH program to resolve problems and to develop legislative and regulatory strategies that will facilitate implementation of the program.

Recommendation 92-3: Geographic Reclassification of Hospitals for Purposes of the Wage Index

a) The proposed guideline for hospitals seeking a higher wage index should require wage payments that are 100 percent instead of 108 percent of the average hourly wages of the area in which they are physically located.

b) The Secretary should seek a legislative or administrative change that would permit reclassification decisions to be made for periods of three years rather than one year.

Recommendation 92-4: Targeted Adjustments for Volume Increases Under the Medicare Physician Payment System

The Secretary should support a legislation change that would allow for different adjustments in fees paid to rural and urban providers if volume of services rendered by urban providers rises faster than for rural physicians.

Recommendation 92-5: Incentives for Rural Physicians

The Secretary should propose legislation that provides additional financial incentives for physicians to practice in rural areas. The incentives should be greatest for physicians practicing in rural Medically Underserved Areas (MUAs) and rural Health Professional Shortage Areas (HPSAs).

Recommendation 92-6: The Clinical Laboratory Improvement Amendments of 1988 (CLIA) and Rural Health Clinics (RHCs) (repeated in 1993)

The Secretary should reconcile the regulatory requirements for clinical laboratories and the regulatory requirements for RHCs to make it possible for RHCs to comply with the requirements of both programs as "certificate of waiver" laboratories.

Recommendation 92-7: Utilizing Health Care Reform Principles

When reviewing health care reform proposals, the Secretary should use the principles developed by the Committee as a guide for evaluating the appropriateness of the reform proposal for rural areas.

Recommendation 92-8: Basic Health Care Benefits for All Americans

The Secretary should support legislation that will establish a set of minimum, portable, uniform benefits for all Americans. The program should not exclude individuals from eligibility for health insurance and access to health care due to employment status or lack of permanent residence. The benefits should provide a continuum of services ranging from preventive care to rehabilitative and long-term care.

Recommendation 92-9: Demonstration Programs to Encourage Collaboration Among Providers

The Secretary should develop demonstration programs that allow and encourage collaboration of all major health care providers to make health care available in rural communities.

Recommendation 92-10: Assuring Adequate Access to Health Care

The Secretary should support health care reform legislation that will assure that rural residents have adequate access to health care. Specifically, support should be given for the following areas:

  • programs to increase the numbers of primary care providers -- physicians and mid-level practitioners;
  • programs and payment levels that encourage primary care providers and other health care professionals to locate in underserved areas;
  • transportation, emergency, and technological systems so rural residents of all ages can receive, and providers can render, health care;
  • targeted programs that address the special needs of farm families, rural minorities, migrants, and Native Americans.
  • policies and regulations that assure flexibility for communities and/or states to respond to local health care needs.


Recommendation 92-11: Integration of Health and Education Services

The Secretary should support health care reform legislation that encourages the integration of health and education services for all segments of society.

Recommendation 92-12: Rapid Resolution of Payment Disputes

The Secretary should support health care reform legislation that provides for rapid resolution of payment disputes.

Recommendation 92-13: Establish a Coordinating Forum on Agricultural Health and Safety

The Secretary should direct the Office of Rural Health Policy to establish a coordinating forum on agricultural health and safety for the purpose of sharing information and coordinating agricultural health and safety activities across federal departments or agencies.

Recommendation 92-14: Increased Support for State Offices of Rural Health

The Secretary should seek an increased appropriation for the State Offices of Rural Health Program (SORHs) to enable each State Office to take a leadership role in, and provide a forum for, addressing rural occupational health and safety issues (including farming, logging, fishing, and mining) within their respective state and local health communities.

Recommendation 92-15: Development of Continuing Education Programs in Agricultural Health and Safety

The Secretary should seek an appropriation for the Bureau of Health Professions (BHPr) of the Health Resources and Services Administration to support the development of continuing education programs in agricultural health and safety, including prevention, diagnosis, and treatment.

Recommendation 92-16: Safety Training for Farm Children

The Secretary of Health and Human Services should ask the U.S. Department of Agriculture to request that the Cooperative Extension Service begin a child farm safety course for farm children and the parents of children who help on the farm. The course should include a manual of information, similar to the Hunter Safety Course now offered by the National Rifle Association. This manual could be all inclusive, from equipment to pesticides, to hypothermia, to first aid, and so forth.

Recommendation 92-17: Health Career Opportunities Initiative

The Secretary of Health and Human Services should work with the Secretary of Agriculture to develop cooperative programs and incentive funding to attract rural young people to health careers. This should be accomplished in cooperation with the Youth-at-Risk Initiative of the Extension Service's 4-H Development Program. Special attention should be paid to providing opportunities to young people from ethnic and cultural minorities. Whenever possible, this initiative should involve the State Offices of Rural Health, and should be developed with participation from AHECs, the Office of Minority Health, and local health departments.

Recommendation 92-18: Mandatory Rollover Protective Structures and Seat Belts

The Secretary should work with the Secretaries of the Department of Labor, Commerce, and Agriculture to seek legislation for the mandatory inclusion of Rollover Protective Structures (ROPS) and seat belts on all new tractors, and a five-year incentive program to retrofit ROPS and seat belts on tractors currently in use. The cost of the tractor retrofits could be shared by state and federal governments, equipment manufacturers, and tractor owners. Tractor-like devices used in logging should be included under the provisions of this recommendation.

Recommendation 92-19: North American Free Trade Agreement

In anticipation of the North American Free Trade Agreement (NAFTA), the Secretary of Health and Human Services should work with federal, state, local, and private agencies and businesses on both sides of the U.S./Mexico border to identify and create effective working models that address the health care challenges faced by populations living along the border. The models should address housing, sanitation, water quality, infectious disease, pesticide and other environmental hazards, and occupational health and safety. In addition, the models, should, as much as possible, reflect a community organization approach that empowers local residents.

Recommendation 92-20: U.S./Mexico Rural Border Area Projects

In cooperation with the Mexican Ministry of Health, Pan American Health Organization (PAHI), and/or private foundations, the Secretary of Health and Human Services is urged to support six to eight binational U.S./Mexico Rural Border Area projects to demonstrate improved, comprehensive, primary health care services. This would include sanitation and preventive care focusing on maternal, infant, and adolescent health.

Recommendation 92-21: Shortage of Mental Health Professionals in Rural Areas

The Secretary should urge the newly-created Center for Mental Health Services in the Substance Abuse and Mental Health Services Administration (SAMHSA) to address the severe shortages of mental health professionals in rural areas as one of its first priorities.

Recommendation 92-22: Models for Intergovernmental Collaboration

The Secretary should direct the Administration for Native Americans to develop and disseminate a technical assistance document that reviews current roles and responsibilities of federal, state, local and tribal governments for rural Native Americans' and Alaska Natives' health. It should provide examples of rural models for collaboration among these governmental entities.

Recommendation 92-23: Expansion of Initiatives to Address Native American Health Problems

The Sec