UnitedHealth Group’s health‑benefits arm, UnitedHealthcare, has launched a six‑month Rural Payment Acceleration Pilot that will cut Medicare Advantage payment timelines for participating hospitals by 50%, from under 30 days to under 15 days. The pilot will run through July 2026 and will include independent rural hospitals in Oklahoma, Idaho, Minnesota and Missouri, with a total of 30 hospitals selected based on criteria designed to maximize impact on cash‑flow and patient access.
The program will provide immediate cash‑flow relief by accelerating payments to the participating hospitals, allowing them to receive funds earlier than the standard schedule. Hospitals were chosen through a data‑driven selection process that prioritized those with the greatest risk of closure, the highest Medicare Advantage enrollment, and the most acute cash‑flow constraints. The pilot’s 50% reduction in payment timelines is expected to improve liquidity for these facilities and help maintain their operational viability during a period of rising Medicare utilization and cost pressure.
UnitedHealth’s decision to launch the pilot comes amid broader financial challenges in its Medicare Advantage business, where increased utilization and medical costs have pressured margins. In the first quarter of 2025, the company reported revenue of $109.6 billion but missed analyst expectations for both earnings and revenue, prompting a downward revision of full‑year guidance. By supporting rural providers, UnitedHealth aims to stabilize its network, protect enrollment in underserved areas, and mitigate the risk of hospital closures that could erode its Medicare Advantage base.
Bobby Hunter, CEO of UnitedHealthcare Government Programs, said, “Rural hospitals are the backbone of their communities. By speeding up payments to these critical facilities, we’re helping providers focus on what matters most: patient care. Our goal is to co‑create solutions with rural providers that support accessible care close to home. Together, we will learn quickly and scale what works.” The statement underscores UnitedHealth’s commitment to provider partnership and its strategy to maintain a robust network in high‑need regions.
The pilot’s success will provide UnitedHealth with data on the effectiveness of accelerated payments in preserving provider capacity and could inform future expansions of similar programs. If the initiative proves successful, the company may extend the model to additional states or increase the number of participating hospitals, thereby reinforcing its competitive position in the Medicare Advantage market and ensuring continued access to care for rural patients.
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