Following the closure of primary care group Anchor Medical Associations, Rhode Island Governor Dan McKee brought forth several initiatives aimed to address provider shortages, low reimbursement rates and rising healthcare costs, The Newport Daily News reported April 29.
Here are five things to know:
1. Earlier this month, Providence-based Anchor Medical Associates announced it will close all three of its offices by June 30. The decision stems from multiple challenges in replacing retired physicians, including rising operational costs and declining reimbursement rates.
2. At an April 29 press conference, according to the publication, Mr. McKee proposed a budget amendment to expedite the state’s Medicaid reimbursement rate review process. Typically conducted every two years, the review will now occur a year earlier under the amendment.
3. Rhode Island’s Office of the Health Insurance Commissioner also recently introduced regulations requiring payers to increase investments in primary care and ease prior authorization burdens. Blue Cross Blue Shield of Rhode Island has already pledged to raise its primary care payments by $40 million by 2028 and reduce prior authorization requirements by 65%, according to The Newport Daily News.
4. Mr. McKee also announced $5 million in grants for primary care practices that expand patient panels, recruit physicians or other providers and agree to begin serving Medicaid patients. Additionally, his 2026 budget proposal includes funding to expand a loan repayment program for healthcare providers who commit to working in the state for at least two years.
5. Last week, in response to the closure, Mr. McKee has submitted a budget amendment aimed at enhancing financial oversight of providers in the state. The amendment, tied to Mr. McKee’s proposed fiscal year 2025 budget, would mandate quarterly financial reporting from hospitals, nursing facilities, health centers, community behavioral health clinics and large physician practices.
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