Sen. Moran Joins Colleagues in Introducing Legislation to Extend Rural Hospital Program

Washington – U.S. Senator Jerry Moran (R-Kan.) recently joined Sens. Chuck Grassley (R-Iowa) and Michael Bennet (D-Colo.) in introducing the Rural Community Hospital Demonstration Reauthorization Act, legislation that would extend the Rural Community Hospital Demonstration (RCHD) program for another five years. RCHD supports rural hospitals by allowing them to test innovative hospital payment models under Medicare that boost financial sustainability to maintain and improve healthcare access in rural communities. There are currently two Kansas hospitals participating in the RCHD program: Stormont Vail Health Flint Hills Campus in Junction City and McPherson Hospital.

“Local hospitals are critical to the health and success of rural communities in Kansas and across the country,” said Sen. Moran. “I have long supported the Rural Community Hospital Demonstration program because it provides a lifeline for rural hospitals and health care providers, bolstering the stability and certainty needed for them to continue delivering quality care to the communities across our state.”

“Stormont Vail Health is committed to ensuring high-quality care remains local and accessible across the rural communities we serve throughout Kansas,” said Mark Slyter, President and CEO, Stormont Vail Health. “Our Flint Hills Hospital in Junction City demonstrates what is possible when rural hospitals have the right support. The Rural Community Hospital Demonstration Program has been essential in helping us address the significant and growing pressures facing rural health care—from rising costs and workforce shortages to increasing demand for services. It has enabled us to stabilize operations, invest in our people and facilities, and deliver safe, high-quality care close to home. Extending this program for another five years is critical. It will protect access to care in Geary County, strengthen rural health care delivery, and sustain a proven model that benefits patients, providers, and communities alike. Just as importantly, our hospital is a vital economic anchor for the region, and the reauthorization will ensure we can continue meeting the needs of those who depend on us. We are grateful for Senator Jerry Moran’s leadership and his recognition that this legislation is a critical investment in the future of rural health care and the communities that depend on it.”

“Federal legislation to extend the Rural Community Hospital Demonstration Program represents a critical step in sustaining access to healthcare in rural communities,” said Trish Giordano, Geary County Commissioner District #1. “This effort is especially important for Stormont Vail Health’s Flint Hills Campus in Junction City. Over the past three years, our local hospital has made meaningful progress toward financial stability through the dedicated efforts of its leadership, staff, and community partners. Continued participation in the Rural Community Hospital Demonstration Program will help maintain that momentum and ensure residents have reliable access to essential healthcare services close to home. The reauthorization of this program is vital to the long-term sustainability of rural hospitals like ours. Senator Jerry Moran is to be commended for his support of this important legislation.”

“The Rural Community Hospital Demonstration Program has been instrumental in helping McPherson Hospital continue providing high-quality care close to home for the patients and families we serve,” said Tanner Wealand, President and CEO, McPherson Hospital. “The program has strengthened our ability to maintain essential rural health services, support our workforce, and invest in the future of healthcare in our community. We strongly believe extending this program is critical to preserving access to care for rural Kansans and ensuring hospitals like ours can continue meeting the unique needs of rural communities

“Access to care in rural Kansas depends on maintaining stable and sustainable financing pathways for community hospitals. The Rural Community Hospital Demonstration Program has helped participating hospitals continue delivering essential services close to home while supporting the health and economic vitality of their communities,” said Chad Austin, President and CEO, Kansas Hospital Association. “Kansas hospitals appreciate Senator Moran’s leadership and continued commitment to strengthening rural health care through the introduction of this legislation to extend the long-standing program and ensure hospitals can continue serving Kansans for years to come.”

Items to note:

• Sen. Moran has long supported the RCHD program since it was established in 2004, and he has repeatedly cosponsored its reauthorization throughout his time serving in Congress.
  
• The most recent performance data from the Centers for Medicare & Medicaid Services (CMS) found that new RCHD hospitals significantly improved their Medicare margins and had higher capital investments, resulting in stronger financial conditions and helping with staff retention. Participating hospitals are predominantly paid using a reasonable cost-based methodology instead of the inpatient prospective payment system. Currently, all 30 of the program’s spots are being utilized.

The legislation is also cosponsored by Sens. Mike Crapo (R-Idaho), Ron Wyden (D-Ore.), Dan Sullivan (R-Alaska), Ben Ray Luján (D-N.M.), Cindy Hyde-Smith (R-Miss.), Peter Welch (D-Vt.), Angus King (I-Maine), Lisa Murkowski (R-Alaska), Jeff Merkley (D-Ore.), Pete Ricketts (R-Neb.), Martin Heinrich (D-N.M.), James Lankford (R-Okla.) and John Hickenlooper (D-Colo.).

Full text of the legislation can be found here.