Rhode Island Governor Dan McKee has proposed new financial reporting requirements for healthcare providers following the announcement that Providence-based Anchor Medical Associates will close all three of its offices by June 30, Providence Journal reported April 18.
Here are five things to know:
1. On April 18, the Rhode Island administration 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.
2. Under the proposal, these financial reports, reviewed and approved by each organization’s governing board, would be submitted to the state. The amendment grants the state’s health and human services secretary authority to act on findings of financial risk or instability. Potential interventions could include imposing fines or securing Medicaid federal matching funds and grants to help stabilize healthcare entities deemed to be in imminent jeopardy, according to the report.
3. According to a statement from the governor’s office cited by the Journal, the goal is to increase transparency and detect financial risks early to prevent disruptions in care delivery.
“The goal of this new requirement is to improve transparency and to support early identification of financial risks that may threaten continuity of care,” the statement read, adding that earlier notice could have allowed for “problem-solving.”
4. The amendment comes amid growing concern over Rhode Island’s physician shortage. Mariah Stump, MD, vice president of the Rhode Island Medical Society, called the situation a “state of emergency” in a recent interview with WPRI 12’s Newsmakers.
5. In a statement, Anchor Medical Associates cited its inability to replace retiring physicians and the unsustainable gap between rising operational costs and stagnant insurance reimbursement rates. Its Warwick Pediatric/Adult Medicine office will close first on April 30, followed by two additional locations.
“The decision to close our practices has been extremely difficult, particularly against the backdrop of a shortage of primary care physicians across the state,” the group said in the statement.
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