Blackburn unveils bipartisan Save Rural Hospitals Act

To preserve access to rural health care, U.S. Sen. Marsha Blackburn (R-TN) on March 15 signed on as the lead original cosponsor of bipartisan legislation that would ensure fair Medicare hospital payments for services provided at rural hospitals.

“As I speak with Tennessee leaders and medical professionals, rural health care is a top priority,” Sen. Blackburn said. “By establishing an appropriate national minimum to the Medicare hospital area wage index, we can help ensure rural hospitals have the resources to recruit and retain quality health care professionals.”

The Save Rural Hospitals Act of 2023, S. 803, which Sen. Blackburn introduced alongside bill sponsor U.S. Sen. Mark Warner (D-VA) and six fellow cosponsors, including U.S. Sen. Roger Wicker (R-MS), aims to help curb the trend of hospital closures in rural communities, according to a bill summary provided by Sen. Blackburn’s staff.

Currently, many rural hospitals lack the resources available to those in more populated areas to offer competitive salaries because they receive lower reimbursements from the federal government, in turn creating a staffing crisis, according to the hospital.  

The Senate bill would amend the Medicare Area Wage Index, which is used to adjust a hospital’s overall payment from the Medicare program on the basis of geographic differences in labor costs so that rural hospitals receive fair payment for the care they provide, says the summary, noting that a national minimum of 0.85 would be established for the formula.

“Rural hospitals across the country and the Commonwealth of Virginia are struggling to recruit and retain quality healthcare professionals,” said Sen. Warner. “This legislation aims to ensure that all hospitals are able to deliver appropriate care by attracting employees and compensating them fairly for their lifesaving work, regardless of where they are located.”

The Tennessee Hospital Association, the Virginia Rural Health Association, the Virginia Hospital & Healthcare Association, and Ballad Health support S. 803.