Sens. Moran, Bennet Introduce Bipartisan Legislation to Revitalize Rural Hospitals

Washington–U.S. Senators Jerry Moran (R-Kan.) – a member of the Senate Rural Health Caucus – and Michael Bennet (D-Colo.) – co-chair of the Senate Rural Health Caucus – yesterday introduced the Rural Hospital Revitalization Act, bipartisan legislation that would strengthen rural hospitals by providing zero-interest loans to support new construction and the renovation of existing hospital facilities. The resources would be provided through the U.S. Department of Agriculture’s (USDA) Community Facilities Direct Loan Program to improve the ability of hospitals to provide essential health care services to rural communities.

“Rural hospitals are critical to the well-being of the communities they serve in Kansas and across the country,” said Sen. Moran. “By providing a pathway for qualifying rural hospitals to make needed renovations and facility upgrades, this legislation will help promote the long-term viability of rural hospitals and communities.”

“Rural hospitals are a safety net for communities across the country, yet they have faced challenges with aging infrastructure and financial instability for years,” said Sen. Bennet. “I’m grateful to have worked with rural hospitals on the ground in Colorado to write this legislation, which will help eligible facilities upgrade their infrastructure and expand capacity so that they can better serve their communities and create jobs today and into the future.”

“Rural hospitals are on the front lines of care for older, sicker populations, yet too many are operating in aging facilities without access to affordable capital,” said Alan Morgan, CEO of the National Rural Health Association. “The Rural Hospital Revitalization Act takes an important, bipartisan approach to strengthening rural health infrastructure by utilizing existing USDA programs to deliver zero-interest capital to qualifying hospitals. This type of investment is essential to stabilizing rural health systems, preventing closures, and ensuring communities can access care close to home.”

To qualify for a loan, a hospital would need to meet the following criteria:

• Be located within a county of fewer than 20,000 residents; and
  • Located at least 35 miles from the nearest hospital (or at least 15 miles if the hospital is in an area with mountainous terrain or only secondary roads); or
  • Is designated as a Critical Access Hospital or a Rural Emergency Hospital;
• Have demonstrated need; and
• Be financially stable. 
  

Text of the legislation can be found here.

Items to note:

• Last year, Sen. Moran helped to establish the Rural Health Transformation (RHT) Program, which directs the Centers of Medicare and Medicaid (CMS) to work with states to identify the root challenges facing rural health providers and invest in solutions to improve outcomes for struggling providers.
  
  
  • Kansas rural health providers have received $222 million in the first year of the five-year RHT Program, one of the highest amounts awarded and exceeded by only five other states.
    
    
• As a senior member of the Senate Appropriations Committee, Sen. Moran secured more than $7 million in federal investments for Kansas rural hospitals and community health centers in the FY26 appropriations legislation approved by Congress and signed into law earlier this year.