Congressman Drew Ferguson of Georgia’s Third District and Terri Sewell of Alabama has introduced the Save Rural Hospitals Act of 2023. According to a press release issued on Thursday, “This legislation would help curb hospital closures in rural communities by ensuring fairness in Medicare hospital payments”
Noted in the press release is the fact that 130 rural hospitals have closed since 2010. During the pandemic, closures accelerated to more than 20 closings in 2020 alone. The closures have come as the result of low patient volume along with financial strain that has hit rural communities.
Rural hospitals have been receiving much lower reimbursement rates that are based on the Medicare Area Wage Index in comparison to urban hospitals, causing the financial strain on rural hospitals to be dire.
According to the release, “The legislation would establish an appropriate national minimum (0.85) to ensure that rural hospitals receive their payment for the care they provide. This legislation would also help ensure fairness in reimbursements for hospitals across the country, including the many hospitals that are facing closures in rural areas, and fix severe and disproportionate disadvantages that unfairly penalize hundreds of communities and hospitals across the country.”
“Rural hospitals play an essential role in serving their communities and providing vital care to patients,” Ferguson said. “Georgia has one of the lowest reimbursement rates nationwide, and the Save Rural Hospitals Act would help put rural hospitals in the Peach State — and across the country — on a level playing field by raising their Medicare reimbursement levels.”
Added Ferguson, “I am proud to work with Representative Sewell on this bipartisan legislation.”
The legislation also had six original co-sponsors which included representatives Buddy Carter and Rick Allen of Georgia, Bennie Thompson of Mississippi, Joe Negsue of Colorado, Travey Mann of Kansas and Diana Harshbarger of Tennessee
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