Bynum Introduces Bipartisan Bill to Protect Rural Hospitals

Today, Congresswoman Janelle Bynum (OR-05) introduced the bipartisan, bicameral Rural Community Hospital Demonstration Program Reauthorization Act to extend the Rural Community Hospital Demonstration (RCHD) for five years.

The RCHD provides critical support to rural hospitals across the country by allowing them to test innovative hospital payment models under Medicare that boost financial stability to maintain and improve healthcare access in rural communities, keep families healthy, and support local economies. Santiam Hospital in Stayton, OR is one of the hospitals that receive funding from the RCHD.

This bill is co-led by Rep. Jared Golden (ME-02), Rep. Mike Flood (NE-01), and Rep. Randy Feenstra (IA-04). It was also introduced by Senator Grassley (R-IA) and passed the U.S. Senate.

"In rural areas, hospitals are the backbone of the community," said Rep. Bynum."They ensure people have access to lifesaving care, expand job opportunities, and keep our local economies moving. We must extend the Rural Community Hospital Demonstration program to make sure Oregonians and Americans everywhere have access to quality healthcare close to home."

"Without rural hospitals, many of my constituents would have to travel long distances, sometimes hours away, to get the care they need," said Rep. Golden."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."

"Rural community hospitals are critical lifelines for families across the country," said Rep. Flood."The RCHD program is a much-needed tool with an outstanding track record of helping rural community hospitals deliver high-quality care to patients. This program is vital to many Nebraskans, and I am pleased to join Congressman Feenstra in extending this impactful program for another five years as a co-lead."

"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," said Rep. Feenstra."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 various organizations across rural communities.

"With more than 30% of Oregonians living in rural or frontiers areas, rural hospitals are vital to the health and well-being of communities," said Becky Hultberg, President & CEO of the Hospital Association of Oregon."However, rural hospitals are under increasing financial pressure, putting access to care and the stability of local economies at risk. We appreciate Representative Bynum's leadership on these challenges and support the Rural Community Hospital Demonstration program which offers a pragmatic, proven approach to sustaining access to care for a group of small rural hospitals by aligning their Medicare payments with the real costs of providing care."

"The Rural Community Hospital Demonstration Program plays a critical role in sustaining rural hospitals like Santiam," said Maggie Hudson, MBA, President & CEO, Santiam Hospital & Clinics."As a new participant, we've already experienced how this support helps address growing financial pressures while allowing us to maintain essential services and meet the needs of our communities. What makes this program so impactful is that it better reflects the true cost of providing care in rural settings, recognizing not only direct service costs, but also the operational support required to keep services available. This approach provides the financial stability rural hospitals need to invest in their workforce, strengthen care delivery, and ensure patients can access high-quality care close to home. Continued support of this program is vital to preserving rural healthcare infrastructure and the communities that depend on it."

"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 Representative Feenstra and Representative 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.

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