Rural Hospital Inpatient Fund Payments

Overview
The Rural Hospital Inpatient Fund was established by the Legislature in 2005 in response to a 2002 hospital inpatient study that showed rural hospital inpatient cost structures are higher than urban hospital cost structures for inpatient services. This fund was designed to supplement rural hospital inpatient payments.

RHIF distributes $12.1 million annually to rural hospitals with less than 100 beds. CMS has recently phased out supplemental payments. As a result, AHCCCS adjusted DRG base rates for impacted hospitals, which provides the funding to the appropriate hospitals based on inpatient utilization. Starting 1/1/2023, a separate supplemental payment is no longer made for RHIF.

As of 1/1/2023, Inpatient Hospital APR-DRG DRG Base Rate for hospitals qualified for the Rural Hospital Inpatient Fund (RHIF) were adjusted to account for the RHIF amount over a 9-month period (January 1, 2023 through September 30, 2023).

As of 10/1/2023, Inpatient Hospital APR-DRG DRG Base Rate for hospitals qualified for the Rural Hospital Inpatient Fund (RHIF) have been adjusted to account for the RHIF amount over a 12-month period.

For more information see the DRG base changes and Inpatient Hospital APR-DRG Reimbursement Fee Schedules:

• AHCCCS NOTICE OF PUBLIC INFORMATION CYE 2023 PRELIMINARY PUBLIC NOTICE
• NOTICE OF PUBLIC INFORMATION-FINAL PUBLIC NOTICE
• Inpatient Hospital APR-DRG Reimbursement Values

Citations

• A.R.S. § 36-2905.02
• A.A.C. R9-22-712.07

Scheduled Payment Dates

Rural Hospital Inpatient Fund payments are usually made each year in late June.

Payment History

2022-2017