Heinrich, Luján Secure Senate Passage of Legislation to Keep Rural Community Hospitals Open, Improve New Mexicans’ Access to Healthcare

WASHINGTON - U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.) secured Senate passage of the Rural Community Hospital Demonstration Reauthorization Act, legislation they cosponsored to improve New Mexicans' access to healthcare and keep rural hospitals open by extending the Rural Community Hospital Demonstration (RCHD) program for another five years.

Many small rural community hospitals are too large to qualify for Critical Access Hospital status, but still struggle to stay open under Medicare's current payment system. The Rural Community Hospital Demonstration program helps address this gap by allowing certain hospitals to receive payments that better reflect the cost of care. Since 2005, the program has supported 55 rural hospitals across the country, helping keep their doors open and providing valuable insight into how to strengthen rural healthcare.

New Mexico hospitals currently participating in the RCHD program include Roosevelt General Hospital and Artesia General Hospital. This legislation will provide these New Mexico hospitals with the opportunity to extend their participation, should they choose to remain in the RCHD program.

"Senate passage of our legislation to extend the Rural Community Hospital Demonstration Program is an important step toward helping folks get needed emergency care in minutes, not hours," said Heinrich. "Now we need the U.S. House to urgently take up and pass this legislation. No one in New Mexico should have to travel hours to receive the care they need, whether they're in a moment of crisis, getting routine care, or welcoming the newest member of their family."

"When emergencies happen, care close to home saves lives. Access to a nearby hospital is lifesaving for people living in our rural communities across New Mexico," said Luján. "Right now, many rural hospitals in New Mexico are at risk of closing. Extending the Rural Community Hospital Demonstration program is essential to helping keep those doors open and ensuring families can get the care they need. The Senate passed our legislation, and now the House needs to act without delay to protect health care access for every New Mexican."

"I am so grateful to Senator Heinrich and Senator Luján for supporting the continuation of CMS's Rural Hospital Demonstration program. This program is vital for rural community hospitals who don't qualify for Critical Access Hospital designation, which allows for higher, cost-based reimbursement for inpatient and swing bed care. These services are typically sources of financial loss for small hospitals due to low volume, but they are necessary to support our community. This program helps to ensure long term sustainability and availability of vital healthcare in rural communities, and we are very thankful for their support," said Kaye Green, CEO of Roosevelt General Hospital in Portales, N.M.

The Rural Community Hospital Demonstration Reauthorization Act now heads to the U.S. House of Representatives for consideration.

The legislation is led by U.S. Senators Chuck Grassley (R-Iowa) and Michael Bennet (D-Colo.). Alongside Heinrich and Luján, the bill is cosponsored by U.S. Senators Mike Crapo (R-Idaho), Ron Wyden (D-Ore.), Dan Sullivan (R-Alaska), Cindy Hyde-Smith (R-Miss.), Peter Welch (D-Vt.), Jerry Moran (R-Kan.), Angus King (I-Maine), Lisa Murkowski (R-Alaska), Jeff Merkley (D-Ore.), Pete Ricketts (R-Neb.), James Lankford (R-Okla.) and John Hickenlooper (D-Colo.).

The full text of the legislation is here.

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