Legislation would codify a USDA pilot program that provides technical assistance to hospitals
WASHINGTON, D.C. – U.S. Senators Peter Welch (D-Vt.) and Mike Rounds (R-S.D.) introduced legislation to help rural hospitals that are at risk of being closed. The Rural Hospital Technical Assistance Program Act would codify an existing pilot program administered by the U.S. Department of Agriculture (USDA) that provides technical assistance to rural hospitals to prevent closures, improve their financial and operational performance and strengthen essential healthcare services in rural communities.
“The health and wellbeing of Vermont’s rural hospitals impacts the health and wellbeing of every Vermonter. Our rural hospitals need help to keep their doors open for our patients,” said Welch. “I’m proud to partner with Senator Rounds on this bipartisan bill, which will strengthen hospitals across the United States and help improve care and services.”
“Rural hospitals are a lifeline for the communities they serve, and far too many are struggling to keep their doors open,” said Senator Rounds. “Providing technical assistance to rural hospitals at risk for closure gives providers and administrators a fresh set of eyes on their operations and allows for new ideas to help stabilize their operations. The Rural Hospital Technical Assistance Program Act would codify this pilot program and help rural hospitals continue to provide the critical care that South Dakotans need.”
Through an agreement with USDA, the National Rural Health Association provides several types of technical assistance to include expert guidance on optimizing billing processes, addressing reimbursement delays, improving collections and maximizing available reimbursement opportunities. Any rural hospital is eligible under this program, with preference given to hospitals in persistent poverty communities of less than 20,000. Participating hospitals are provided with a contractor specializing in rural health care delivery, who then reports back on goals and next steps to get the hospitals to financial and operational stability. To date, 17 hospitals have participated in the pilot version of the program, which has been highly effective in assisting rural hospitals.
“The National Rural Health Association (NRHA) applauds Senator Rounds for his introduction of the Rural Health Care Facility Technical Assistance Program Act to expand and codify the existing USDA pilot program,” said Alan Morgan, CEO of the National Rural Health Association. “This legislation will help prevent hospital closures, improve financial and operations performance for facilities, and strengthen essential healthcare services in rural communities. NRHA looks forward to working with Congress to keep hospital doors open and continue providing care for the 60 million residents living in rural America.”
Since 2005, 186 rural hospitals have closed nationwide, and over 400 rural hospitals are currently vulnerable to closure. Many rural hospitals face significant infrastructure needs, including updates on aging facilities, implementation of electronic health records and expansion of facilities to meet the changing needs of their service area.
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