Leveraging RHC Flexibility to Expand Specialty Services: Financial, Operational & Strategic Considerations

Recent regulatory changes have created a pivotal opportunity for Rural Health Clinics (RHCs) to expand beyond traditional primary care models and serve as hubs for specialty services. With the removal of the requirement that RHCs primarily provide primary care, health systems and rural providers now have greater flexibility to redesign service delivery models to meet growing specialty care demand in their communities.

This session will explore how healthcare organizations can strategically leverage existing and potential new RHCs to broaden specialty services while maintaining financial sustainability and operational efficiency. Participants will gain insight into evaluating their current RHC footprint, understanding reimbursement implications, assessing operational readiness, and determining the optimal RHC expansion strategy aligned with broader service goals.

Through practical frameworks and real-world considerations, this session will equip leaders with the tools needed to assess specialty service expansion within existing RHC facilities and evaluate opportunities for developing new RHC sites to support community demand.

At the end of this session, participants will be able to:

  • Understand Regulatory Changes

    • Explain how recent regulatory updates have increased flexibility in RHC service offerings.

    • Identify how these changes impact specialty service expansion opportunities.

  • Evaluate Financial Implications

    • Assess reimbursement considerations related to specialty services in RHC settings.

    • Understand cost structure implications and financial modeling considerations for expansion.

  • Analyze Operational Readiness

    • Evaluate staffing, space, scheduling, and compliance requirements for integrating specialty services into existing RHCs.

    • Identify key operational risks and mitigation strategies.

  • Develop an Optimal RHC Strategy

    • Determine when to expand specialty services within existing RHC facilities versus developing new RHC sites.

    • Align RHC expansion decisions with broader organizational growth and community service goals.

  • Apply a Structured Assessment Framework

    • Utilize a practical framework to analyze current RHC footprint and specialty service expansion plans.

    • Translate findings into actionable recommendations and strategic next steps.

Q&A

How do people stay on top of all the payer newsletters to sort through everything to pull out applicable information for the facility/provider? Who typically is going through the newsletter to gather the information to share with other staff?

Our billing specialists are organized by payer, allowing them to develop deep expertise in their respective areas. Each specialist subscribes to their payer’s newsletters to stay informed about updates and changes. Additionally, our team leads, Supervisor, and Director of Patient Accounts—along with the Prior Authorization Team—collaborate to share key insights and ensure the entire team stays up to date. This collective approach enhances our ability to navigate payer policies efficiently and provide the best possible service. 

What leadership structure do you have in place for your revenue cycle and who or what do you use for training when billers or coders need it? Especially for new service lines or common denials?

Our billing specialists are supported by a structured leadership team, including two team leads, one Supervisor, and one Director. Training for billing specialists is conducted by our Supervisor and team leads to ensure consistency and expertise. Additionally, billing specialists meet weekly with leadership to review denials and identify payer-specific trends. For new coders, who are required to be certified, training is led by our Coding Lead to maintain high standards of accuracy and compliance.

Are the billers assigned based on an alphabetical split or by insurance type, such as Medicare and Medicaid specialists?

Billers are first assigned by insurance type and then further divided by alphabetical split. Since each insurance type has multiple billers, the alpha split helps distribute the workload efficiently.

Since we have union employees, how could we implement a similar incentive to Kindal’s while ensuring compliance with union regulations?

This would depend on the specifics of your union contract. Stroudwater can work with you to review the contract and develop a compliant incentive model.

Does your Coding/HIM department manage CPT coding, modifiers, and ICD-10, or do they focus solely on ICD-10?

Our Coding team handles all aspects of coding, including CPT, modifiers, and ICD-10. They thoroughly review all provider documentation to ensure accuracy and compliance.