Rounds Introduces Legislation to Prevent Rural Hospital Closures

WASHINGTON – U.S. Senators Mike Rounds (R-S.D.) and Peter Welch (D-Vt.) today 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.

“Rural hospitals are a lifeline for the communities they serve, and far too many are struggling to keep their doors open,” said 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.”

“The health and wellbeing of Vermont’s rural hospitals impact the health and wellbeing of every Vermonter—but 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 rural hospitals improve their care and services.”  

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, including four in South Dakota: Bennett County Hospital in Martin, Freeman Regional Health Services in Freeman, Landmann-Jungman Memorial Hospital in Scotland and Pioneer Memorial Hospital in Viborg. The program has been highly effective in assisting rural hospitals.

“The South Dakota Association of Healthcare Organizations would like to thank Senator Rounds for introducing this important legislation to support South Dakota’s rural hospitals,” said Tim Rave, President and CEO of the South Dakota Association of Healthcare Organizations. “In a state where our population density is 12 people per square mile and 57% of our residents live in a rural area, it is critical to ensure access to quality health care for our rural and medically underserved communities. The Rural Hospital TA Program Act will help our hospitals identify needs, access resources and strengthen their operations to maintain essential health care services.”

“As a rural CEO, I am incredibly pleased with the process and action plan developed to help ensure our continued viability,” said Melissa Gale, CEO of Landmann-Jungman Memorial Hospital Avera. “It was uniquely tailored to our facility, addressing the specific concerns raised during the site visit. The recommendations are both practical and achievable for our small, rural community in Scotland. This approach truly reflects a deep understanding of our needs and challenges.”

“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.”

BACKGROUND:

Since 2005, 186 rural hospitals have closed nationwide, and over 400 rural hospitals are currently vulnerable to closure. 28 percent of hospitals in South Dakota are considered 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.

Click HERE to read full bill text.

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