Rounds Introduces Legislation to Prevent Rural Hospital Closures
Legislation would codify a USDA pilot program that provides technical assistance to hospitals
WASHINGTON – U.S. Senators Mike Rounds (R-S.D.) and Peter Welch (D-Vt.) today introduced legislation to help rural hospitals that are at risk of being closed. The Rural Hospital Technical Assistance Program Act would codify an existing pilot program administered by the U.S. Department of Agriculture (USDA) that provides technical assistance to rural hospitals to prevent closures, improve their financial and operational performance and strengthen essential healthcare services in rural communities.
“Rural hospitals are a lifeline for the communities they serve, and far too many are struggling to keep their doors open,” said Rounds. “Providing technical assistance to rural hospitals at risk for closure gives providers and administrators a fresh set of eyes on their operations and allows for new ideas to help stabilize their operations. The Rural Hospital Technical Assistance Program Act would codify this pilot program and help rural hospitals continue to provide the critical care that South Dakotans need.”
“The health and wellbeing of Vermont’s rural hospitals impact the health and wellbeing of every Vermonter—but our rural hospitals need help to keep their doors open for our patients,” said Welch. “I’m proud to partner with Senator Rounds on this bipartisan bill, which will strengthen hospitals across the United States and help rural hospitals improve their care and services.”
Through an agreement with USDA, the National Rural Health Association provides several types of technical assistance to include expert guidance on optimizing billing processes, addressing reimbursement delays, improving collections and maximizing available reimbursement opportunities. Any rural hospital is eligible under this program, with preference given to hospitals in persistent poverty communities of less than 20,000. Participating hospitals are provided with a contractor specializing in rural health care delivery, who then reports back on goals and next steps to get the hospitals to financial and operational stability.
To date, 17 hospitals have participated in the pilot version of the program, including four in South Dakota: Bennett County Hospital in Martin, Freeman Regional Health Services in Freeman, Landmann-Jungman Memorial Hospital in Scotland and Pioneer Memorial Hospital in Viborg. The program has been highly effective in assisting rural hospitals.
“The South Dakota Association of Healthcare Organizations would like to thank Senator Rounds for introducing this important legislation to support South Dakota’s rural hospitals,” said Tim Rave, President and CEO of the South Dakota Association of Healthcare Organizations. “In a state where our population density is 12 people per square mile and 57% of our residents live in a rural area, it is critical to ensure access to quality health care for our rural and medically underserved communities. The Rural Hospital TA Program Act will help our hospitals identify needs, access resources and strengthen their operations to maintain essential health care services.”
“As a rural CEO, I am incredibly pleased with the process and action plan developed to help ensure our continued viability,” said Melissa Gale, CEO of Landmann-Jungman Memorial Hospital Avera. “It was uniquely tailored to our facility, addressing the specific concerns raised during the site visit. The recommendations are both practical and achievable for our small, rural community in Scotland. This approach truly reflects a deep understanding of our needs and challenges.”
“The National Rural Health Association (NRHA) applauds Senator Rounds for his introduction of the Rural Health Care Facility Technical Assistance Program Act to expand and codify the existing USDA pilot program,” said Alan Morgan, CEO of the National Rural Health Association. “This legislation will help prevent hospital closures, improve financial and operations performance for facilities, and strengthen essential healthcare services in rural communities. NRHA looks forward to working with Congress to keep hospital doors open and continue providing care for the 60 million residents living in rural America.”
BACKGROUND:
Since 2005, 186 rural hospitals have closed nationwide, and over 400 rural hospitals are currently vulnerable to closure. 28 percent of hospitals in South Dakota are considered vulnerable to closure. Many rural hospitals face significant infrastructure needs, including updates on aging facilities, implementation of electronic health records and expansion of facilities to meet the changing needs of their service area.
Click HERE to read full bill text.
###
It’s all show and no go. Dusty, John, and Mike like to introduce bills but nothing ever happens. Fire them all.
The voters wanted Medicaid Expansion.
Those of us who know how Medicaid works, its low reimbursement rate, the fact that the patients cannot be billed for unpaid balances, and were aware of over-utilization of hospital EDs by Medicaid enrollees (2-3X that of the uninsured and the privately insured according to CMS) saw this coming.
It’s not the uninsured who leave huge unpaid medical bills in their wake, it’s the people on Medicaid.
We warned you.
As someone who is in healthcare, you are correct.
My husband always likes to say “stupid should hurt.”
It’s too bad our “leaders” don’t let the voters experience the foreseeable consequences of the things they vote for.
It reminds me of a letter to the editor in the Argus Leader shortly after Stephanie Herseth steamrolled over Bruce Whalen in the run for Congress. The letter writer asked “who is Nancy Pelosi and who voted for HER???”
Something like 65% of South Dakota voters voted for Nancy Pelosi for Speaker without even realizing it.
Rounds should just tell people “you voted for Medicaid expansion, and now you’re going to get it, and it’s going to hurt. “
And you are getting what you asked for with trump.
but we are okay with what Trump is doing. It’s what the voters did that is the problem here.
And the people voted to expand the number of people on Medicaid.
Did they know how Medicaid works?
Did they know Medicaid’s reimbursement rates are so low that medical providers lose money on every patient they treat?
Did they know how long it takes to get any payments from Medicaid?
Did they know the providers cannot lawfully bill the patients for the unpaid balances?
Did they know that the only way the providers can stay in business is to shift the costs to their other patients, who will see bigger bills?
And do they know that if the providers cannot cover their costs by billing their paying customers, they will close their doors?
Of course small rural hospitals are in danger of closing; the people voted for them to close.