The vision

A Western-based health system provides essential services for many of its state’s rural residents. But mounting reimbursement pressures, rapid population growth, and provider shortages were threatening the rural health system’s financial sustainability. Leaders sought to unlock 340B program value and evaluate the potential of converting their physician clinics to Rural Health Clinic (RHC) status.

Co-creating the solution

The health system partnered with Chartis to assess the fiscal impact of establishing RHC status and strengthening its 340B program, identifying more than $2M in financial improvement opportunities across Medicare, Medicaid, and pharmacy. With leadership alignment, the organization advanced its RHC conversion while establishing the necessary regulatory, billing, and operational foundations. In parallel, the organization integrated its 340B strategy and established governance to support sustainable program growth. 

Believe in better

With its RHC conversion complete and an integrated 340B program strategy established, the rural health system laid the foundation for scalable growth. It is now positioned for sustainable growth and financial stability, with capacity to reinvest in expanding ambulatory access for the rural communities it serves.

Meaningful outcomes

The projected impact from RHC conversion and 340B optimization includes:
  • $2-3M recurring annual financial impact
  • Sustained ambulatory access for 127K rural community members
  • Ensured compliance through integrated billing workflows

Building to better

Rural organizations can unlock 340B program value by:
  • Evaluating regulatory implications and building in compliance before scaling
  • Integrating RHC and 340B strategies across care, reimbursement, and pharmacy
  • Continuously updating 340B strategies to maximize community benefits

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