Lucas cosponsors bills supporting rural hospitals
Posted on: 8/28/20
Rep. Frank Lucas (OK-03) announced yesterday he recently cosponsored Rep. Jason Smith’s (MO-08) Saving Rural Hospitals from Closure Act, which authorizes the secretary of Health and Human Services (HHS) to take certain measures, including forgiving all Medicare accelerated payments for rural hospitals that are experiencing severe financial hardship.
“Congress must help our rural hospitals weather the pandemic’s economic uncertainty by allowing the secretary of HHS to give hospitals the flexibility they need in order to remain financially sound. We must not allow those who call rural America home to lose these life-saving resources and access to general health care needs. I strongly urge my colleagues to continue their support for America’s hospitals and encourage them to provide rural hospitals the necessary resources and funding in order to help them weather the current economic hardships,” said Rep. Lucas.
Specifically, the legislation authorizes HHS to forgive hospitals’ repayment on Medicare accelerated payments, extend the timeline for their repayment, or lower the interest rate of their payments if there is “the existence of a serious chance of closure, impending bankruptcy, large-scale layoffs, or any other situation the secretary determines appropriate.” It also stipulates that HHS must make a decision within 30 days of receiving a request from a hospital experiencing hardship.
“Oklahoma rural hospitals are vital to their communities, not only as health care providers, but also as economic engines to their local economy and as major employers. Rural hospitals currently face deep financial challenges as a result of the COVID-19 pandemic. The Oklahoma Hospital Association appreciates Congressman Lucas’ leadership in advancing this measure to help. This act is an important step in the right direction toward providing a lifeline to struggling hospitals during a challenging time,” said Patti Davis, president, Oklahoma Hospital Association.
Additionally, Rep. Lucas announced earlier this week he recently cosponsored Rep. Fred Keller’s (PA-12) Reviewing Urban and Rural Adjustments to Level Hospital Expenses and Lopsided Payments Act, otherwise known as the RURAL HELP Act.
The RURAL HELP Act aims to bring parity to inpatient Medicare reimbursement payments between rural and urban hospitals to help struggling rural hospitals survive by requiring the U.S. Department of Health and Human Services (HHS) to determine the precise level of systematic disparity that exists between urban and rural hospital payments under such reimbursements. It also specifies that once the evaluation is completed, the secretary shall make an adjustment to Centers for Medicare & Medicaid Services (CMS) payment policies to make up for the identified disparity.
“Rural hospitals are essential in Oklahoma. From providing critical health care in communities to driving local economies as the area’s largest employers, rural hospitals are not only the backbone, but the heart of our towns and cities,” said Rep. Lucas. “Sadly, Oklahoma’s rural hospitals face the risk of closure due to financial hardships, including disproportionate Medicare reimbursement rates paid between rural and urban hospitals throughout the United States. I’m gravely concerned about the increasing trend of rural hospital closures and I urge the Centers for Medicare & Medicaid Services to examine this payment discrepancy as they further update the agency’s efforts supporting America’s hospitals.”