U.S. Reps. Terri Sewell (D-AL) and Drew Ferguson (R-GA) recently introduced legislation seeking to reduce rural hospital closures and financial burdens amid the COVID-19 pandemic by ensuring fairness in Medicare hospital payments.
The Save Rural Hospitals Act of 2021 would address the continued loss of revenue by rural hospitals in the wake of serving their communities and providing lifesaving care during the pandemic.
“As we continuously work to rebuild after the devastation of the past year, it is critically important that we acknowledge the lasting impact that the COVID-19 pandemic has had on rural hospitals across this nation,” Sewell said. “Even before the pandemic, rural hospitals struggled with inadequate reimbursements, low volume, and high operating costs. Now it is imperative that we provide the reimbursements these hospitals so desperately need.”
The bill would establish an appropriate national minimum for the Medicare Area Wage Index as a means of ensuring rural hospitals receive payment for the care they provide, preserving the existing reimbursements for urban hospitals.
“By raising the Medicare reimbursement levels for rural hospitals, we will be strengthening health care for our rural and underserved communities,” Ferguson said. “Georgia has one of the lowest reimbursement rates nationwide, and we must ensure a level playing field for rural hospitals in the Peach State – and across the country.”