AHA-supported bill would reopen ‘necessary provider’ designation

AHA today voiced support for the Critical Access Hospital Expansion Act (H.R. 6693), legislation that would reopen the “necessary provider” designation to eligible rural hospitals. “As you know, the Critical Access Hospital (CAH) designation allows small rural hospitals to receive cost-based Medicare reimbursement, which can help sustain services in the community,” AHA said in a letter to the bill’s sponsor, Rep. Mike Thompson, D-Calif. “Hospitals must meet several criteria, including a mileage requirement, in order to be eligible. A hospital can be exempt from the mileage requirement if the state certifies the hospital as a necessary provider; however, the necessary provider designation expired on Jan. 1, 2006. AHA supports your legislation to re-open the necessary provider CAH designation to further support local access to care in rural areas."