WASHINGTON, D.C. – U.S. Senator Cindy Hyde-Smith (R-Miss.) announced Tuesday her support for legislation to help financially vulnerable rural hospitals keep their doors open by expanding eligibility to higher Medicare payments.
Hyde-Smith is cosponsoring the Rural Hospital Closure Relief Act (S.3103), which would update Medicare Critical Access Hospital (CAH) rules to give states authority to designate rural hospitals to qualify for higher Medicare reimbursement rates.
Under CAH status, hospitals are paid a higher Medicare rate -- 101 percent of their actual costs, rather than set rates per service, as long as they have fewer than 25 inpatient beds; are located 35 miles from other hospitals; maintain patient length of stays less than 96 hours; and offer 24/7 emergency care.
The Rural Hospital Closure Relief Act would support rural hospitals by providing flexibility around the 35-mile distance requirement and enabling states to certify a hospital as a “necessary provider” in order to obtain CAH designation.
