The Financial Benefits of becoming an RHC

RHC Webinar Series: The Financial Benefits of becoming an RHC

Financial Benefits

Let’s explore the financial benefits after achieving the rural health clinic designation. 

Financial benefits of becoming an RHC:

  1. Revenue Boost: One of the primary incentives for clinics to attain RHC status is the Prospective Payment System (PPS). Under this system, RHCs receive payments based on a predetermined rate, which can be more favorable than the standard fee-for-service reimbursement typical of traditional clinics. This can significantly augment a clinic’s revenue.

  2. Equitable Compensation: RHCs employ a reasonable cost-based reimbursement model, ensuring both physicians and non-physician providers receive fair and more equitable compensation for their services. This model enhances financial sustainability.

  3. 340B Program Access: RHCs qualify for the 340B drug pricing program, granting access to discounted prescription medications. This program facilitates increased affordability and availability of essential medications, potentially resulting in savings of up to 50%.

  4. Recouping Bad Debts: Medicare can reimburse up to 65% of deductibles for unpaid Medicare beneficiaries’ debts, provided that the clinic has made reasonable collection efforts. Utilizing reports and logs through the Electronic Health Record’s analytical platform helps account for these debts and maximize revenue opportunities.

Want to learn more?

Watch the full webinar on if you should become a rural health clinic. Learn more about what Azalea does for rural health on our website

Video Transcript

There are many benefits to becoming an RHC. Let’s look at some of the pros of that.


There’s the prospective payment system, as I said. Oftentimes, the payment will be much greater than what you get and the regular physician’s office.


And I would have to say that probably one of the biggest factors and converting for a lot of our patients as they look at that increase.


I think there are a lot, many more just benefits, but they look at the increase in revenue, and that does help us to be able to operate there.


It’s enhanced payments, as I said, based on the reasonable costs, so we can get some of that back.


And our physicians and our non physicians are not penalized as they are in their clinic environment. They’re both paid at the same rate.


We can do some bad debt recoupment.


Of course, we have to run reports. And logs, and we have to keep an accounting of that, but we can get some of that recruitment back.


Provider based RHCS can use The 3 40 B Sailings.


And there seems to be more and more of that happening, now. And the greatest aspect is the community care provider, and the fact that they can co-ordinate care among all the facilities. They help us, if we are a provider based or in the area, to keep patients out of the emergency room, because oftentimes they can’t walk in to a doctor’s office or that day an appointment may not be available. Or they have no transportation to get there. And they’ll go to the emergency room for treatment where this way we can hate walk in appointments and we can take care of them there. And it’s a mud.



Less costs for the patient, and they can get their service there.