WASHINGTON – Sens. Chuck Grassley of Iowa, Michael Bennet of Colorado, Lisa Murkowski of Alaska and Jerry Moran of Kansas today introduced legislation to extend a Medicare demonstration program that helps rural hospitals in sparsely populated states keep their doors open.
“By extending the demonstration for five more years, this bill allows medium-sized Iowa hospitals participating in the demonstration to continue to seek out opportunities to expand and improve health services needed in their rural communities,” Grassley said.
“This demonstration has helped several hospitals in Colorado’s rural communities, like Delta County, Steamboat Springs, and Sterling, continue to serve their communities,” Bennet said. “This bill will help maintain access to critical health care services in these rural areas.”
“This Rural Community Hospital Demonstration Program has helped Alaskans in Soldotna, Juneau and Sitka,” Murkowski said. “It’s important we give these facilities a bit more time to provide care trying a different financial approach and seeing how it works for our smaller communities.”
“Making certain Kansans have access to quality health care in their home communities is one of my top priorities,” Moran said. “To preserve medical access for Kansans and strengthen rural communities, health care professionals must receive appropriate reimbursement for the care they provide.”
Initiated in 2004, the Rural Community Hospital Demonstration Program is a five-year program created to help rural hospitals in the country’s 10 most sparsely populated states. The program was renewed for another five years in 2010 and expanded to include 20 of the most sparsely populated states. This program provides participating hospitals and tests the feasibility and advisability of a cost-based payment model for acute-care inpatient services.
Eligible hospitals must be located in a rural area and within one of the 20 most sparsely populated states (Alaska, Arizona, Arkansas, Colorado, Idaho, Iowa, Kansas, Maine, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, and Wyoming); must have fewer than 51 inpatient beds; must offer 24-hour emergency care services; and are not eligible for designation as a Community Access Hospital.
Approximately 35 hospitals have participated in this program since its inception. Currently, there are 23 hospitals participating in the Rural Community Hospital Demonstration Program.
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