Congress should support flexible payment options and update reimbursement rates to help rural hospitals overcome the challenges that threaten access to care in rural communities, the AHA told the Senate Finance Subcommittee on Health Care in a statement submitted for a hearing May 17 on the issue. Rural hospitals face unique challenges such as lower patient volumes and older, sicker and poorer patient populations, and depend more on government payers such as Medicare and Medicaid, which each year reimburse them billions of dollars less than the cost of care. They also face surging labor and supply costs and regulatory barriers to care.
 
To help address these challenges, AHA recommends Congress pass the Rural Hospital Support Act, which would make permanent the Medicare-dependent Hospital program and enhanced low-volume Medicare adjustment for small rural prospective payment system hospitals, and allow MDHs and sole community hospitals to choose an additional base year when calculating their payments. AHA also calls for Congress to reopen the necessary provider designation for critical access hospitals; strengthen the Rural Emergency Hospital model; update Medicare and Medicaid reimbursement rates to cover the cost of care; enact AHA-supported legislation and investments to bolster the health care workforce; and make permanent and expand proven telehealth practices.
 
 

Related News Articles

Headline
Applications for the 2026 AHA Rural Hospital Excellence in Innovation Award close Aug. 29 at 1 p.m. ET. The award honors rural hospitals leading the way in…
Headline
The Health Resources and Services Administration has awarded more than $15 million in grants to 58 rural health organizations for four-year projects as part of…
Headline
The AHA Aug. 11 urged the Centers for Medicare & Medicaid Services to prioritize payments to hospitals from the Rural Health Transformation Program. The…
Headline
The Senate Appropriations Committee July 31 advanced the fiscal year 2026 appropriations bill for the Departments of Labor, Health and Human Services,…
Headline
Sen. Josh Hawley, R-Mo., July 15 introduced legislation that would repeal some of the Medicaid funding reductions included in the recently enacted One Big…
Headline
The Rural Hospital Excellence in Innovation Award honors rural hospitals that are leading the way in innovative, sustainable and community-centered care. If…