Graves sponsors bipartisan bill to keep rural hospitals open and operating

Legislation sponsored on June 3 by U.S. Rep. Sam Graves (R-MO) aims to help America’s struggling rural hospitals remain open and continue serving their communities despite falling Medicare reimbursement rates. 

“I’m proud to reintroduce this bipartisan bill to make common-sense reforms, keep rural hospitals open, and ensure folks can get the care they need without having to drive hours to find it,” said Rep. Graves,  

The congressman introduced the Save America’s Rural Hospitals Act, H.R. 3684, with lead original cosponsor U.S. Rep. Nikki Budzinski (D-IL), to amend the Social Security Act to provide for enhanced payments to rural health care providers under the Medicare and Medicaid programs, according to the text of the bill.

“Falling Medicare reimbursement rates have been hammering rural hospitals for years,” said Rep. Graves. “In the last 15 years, more than 150 rural hospitals have closed, and hundreds more are at risk. When these hospitals shut down, families lose access to care, good-paying jobs disappear, and entire communities suffer.”

If enacted, H.R. 3684 would eliminate Medicare sequestration for rural hospitals; make Medicare telehealth service enhancements permanent for Federally Qualified Health Centers and Rural Health Clinics; and make permanent increased Medicare payments for rural ground ambulance services, according to a bill summary provided by Rep. Graves’ staff.

Additionally, the bill would reverse cuts to reimbursement of bad debt for critical access hospitals and rural hospitals by changing the bad debt a rural hospital is liable for from 30 percent to 15 percent for cost reporting periods beginning more than 60 days following enactment. And the bill would permanently extend payment levels for low-volume hospitals and Medicare-dependent hospitals, among other provisions.

“Rural hospitals are a lifeline for the folks they serve. But with healthcare costs rising and outdated Medicare repayment rules, many have been forced to close their doors,” said Rep. Budzinski. “The Save America’s Rural Hospitals Act offers a real solution to help rural hospitals become more financially solvent so they can continue to serve our communities.”

The National Rural Health Association supports the measure, which has been referred to the U.S. House committees on Ways and Means; Energy and Commerce; and Budget.