U.S. Rep. David Valadao (R-CA) on Jan. 16 proposed a bipartisan bill to create a new health system designation in federal law that would make it easier for hospitals in underserved communities to receive funding, grants, and support from the federal government.
Specifically, the congressman cosponsored the Reinforcing Essential Health Systems for Communities Act, H.R. 7145, with bill sponsor U.S. Rep. Lori Trahan (D-MA) and fellow original cosponsor U.S. Rep. Juan Ciscomani (R-AZ) to amend title XIX of the Social Security Act to establish a definition for “essential health system” in statute.
“The bipartisan Reinforcing Essential Health Systems for Communities Act helps better identify rural and underserved hospitals that require critical investments, making it easier to direct federal resources where they’re needed most,” Rep. Valadao said. “I’ll continue working with my colleagues on both sides of the aisle to advance common-sense solutions to meet that goal.”
To open additional pathways for funding, H.R. 7145 would carve out the new essential health systems designation in federal law and require a report on each hospital’s percentile ranking.
The proposed change then could be used by lawmakers to better target funding, health equity initiatives, and public health resources to support the nonprofit facilities that serve traditionally vulnerable populations, according to a bill summary provided by Rep. Valadao’s office.
A hospital would qualify as an essential health system if it meets specific standards, including that it participates in Medicare’s primary hospital payment program; is operated by a government entity or is a private, nonprofit hospital; and serves a high number of low-income patients, among other criteria.
“The hospitals that care for our most vulnerable neighbors are doing more with less every single day,” said Rep. Trahan. “This bill gives Congress a smarter, fairer way to direct support to the health systems that serve as lifelines in cities and towns across the country.”