CMS Announces Frontier Community Health Integration Project

On January 31, 2014, the Centers for Medicare and Medicare Services (CMS) released a request for applications for the Frontier Community Health Integration Project (FCHIP). This is a three-year demonstration project for eligible Critical Access Hospitals. This project's goals are to develop and test new reimbursement models to improve health outcomes and the delivery of health care in up to four states by better integrating services in very sparsely populated areas.

The eligible states include Alaska, Montana, Nevada, North Dakota and Wyoming. CMS is allowed to select participants in up to four of the five states.

Under this demonstration project, additional resources will be provided to the Critical Access Hospital with potential for additional funding for home health and ambulance services. These additional resources include: 

• Cost-based reimbursement for the telemedicine originating fee
• Reimbursement for telehealth services furnished using asynchronous "store and forward" technology
• Waive the "35-mile rule" for cost based ambulance reimbursement
• Expansion on the limit of 25 beds to 35 beds for additional swing-bed level care
• Enhanced payment for home health services

This program provides an opportunity to improve access to services provided by Critical Access Hospitals. In addition, it may add financial stability to your organization. However, it also comes with some limitation on new construction as well as data submission requirements that must be considered.

Interested entities must complete an application to participate in FCHIP. Applications are due no later than May 5, 2014.

Eide Bailly is reviewing the application requirements and preparing to assist providers in identifying the potential reimbursement impact. We are also prepared to support providers as they complete their application for this program.