Golden co-leads legislation to extend rural hospital program

WASHINGTON — Congressman Jared Golden (ME-02) introduced bipartisan legislation today to extend for five years a program to provide increased Medicare matching funds to rural hospitals including facilities in Ellsworth and Presque Isle. 

The bill — the Rural Community Hospital Demonstration Program Reauthorization Act — was sponsored by U.S. Rep. Randy Feenstra (IA-04), and co-led by Golden and Reps. Mike Flood (NE-01) and Janelle Bynum (OR-05). It is companion legislation to a bill that passed this week in the Senate. 

“Without rural hospitals, many of my constituents would have to travel long distances, sometimes hours away, to get the care they need,” Golden said. “These hospitals are essential, but face unique challenges associated with rural places. Extending this program for another five years will provide them the stability they need to focus on what matters most: caring for their patients.”

The Rural Community Hospital Demonstration, or RCHD, pays Medicare reimbursements to small rural hospitals based on their actual costs, rather than standard fixed rates. To qualify, a hospital must be in a rural area, have fewer than 51 beds and not already be part of the Critical Access Hospitals program. The test program is set to expire at the end of this year. The bill would extend the program until 2031. 

Two hospitals administered by Northern Light Health in Maine’s 2nd Congressional District have participated in RCHD: Northern Light Maine Coast Hospital in Ellsworth and Northern Light AR Gould Hospital in Presque Isle.

“By reauthorizing the Rural Community Hospital Program Demonstration, we are ensuring rural hospitals have the support they need to keep their doors open and continue providing the essential services that keep Iowa’s economy strong, families healthy, and communities thriving,” Feenstra said. “With a proven track record, this program provides rural hospitals with the financial stability needed to sustain health care services in our communities and ensure patients continue to have access to quality care close to home. I am honored to help lead this legislation in the House and strengthen support for Iowa’s rural hospitals.”

This legislation is supported by local and national organizations focused on rural healthcare: 

“We thank Congressman Jared Golden for his leadership in sponsoring legislation to reauthorize the Medicare Rural Hospital Demonstration Project for another 5-year period,” said Lisa Harvey-McPherson, vice president for government relations at Northern Light Health. “Rural hospitals are challenged by low patient volumes, caring for older populations with high chronic disease burdens and a dependence on Medicare and MaineCare payments that reimburse hospitals less than the cost to provide care. The Rural Community Hospital Demonstration Extension Act allows hospitals to continue providing essential care in communities by supporting the financial stability of participating rural hospitals. Hospitals with 50 beds or less are some of the most vulnerable hospitals in Maine as they do not qualify to become Critical Access Hospitals receiving cost-based reimbursement. The Rural Hospital Demonstration Project provides an important model to maintain access in Aroostook and Hancock counties.” 

“Many rural hospitals face financial uncertainty from low patient volumes, sicker patient populations, a challenging payer mix, geographic isolation, and shifts in care delivery,” said Lisa Kidder Hrobsky, American Hospital Association’s Senior Vice President for Advocacy and Political Affairs. “The Rural Community Hospital (RCH) Demonstration Reauthorization Act allows hospitals to continue providing essential care in their communities by supporting the financial stability of participating rural hospitals. Hospitals with 50 beds or less are some of the most vulnerable to closure and the RCH demo offers an important model to maintain access in rural communities around the country. The AHA thanks Rep. Feenstra and Rep. Golden for their strong leadership to support America's rural hospitals.”

“The National Rural Health Association (NRHA) is grateful to see the introduction of the Rural Community Hospital Demonstration (RCHD) Program Reauthorization Act, led by Rep. Feenstra and Rep. Golden,” said Alan Morgan, CEO, NRHA. “This bill would provide a 5-year extension of the RCHD Program, which offers much-needed support for small rural hospitals through enhanced Medicare reimbursement. The RCHD Program has demonstrated improvement in Medicare inpatient margins for participating rural hospitals and has been crucial in helping rural hospital leaders maintain rural hospital viability.”

Full text of the resolution is available here.

###