King Bill to Strengthen Rural Hospitals Passes U.S. Senate

WASHINGTON, D.C. - U.S. Senator Angus King (I-ME) is celebrating Senate passage of bipartisan legislation that would allow hospitals to continue testing innovative hospital payment models under Medicare as they face unprecedented financial challenges in delivering care in rural areas. The Rural Community Hospital Demonstration Reauthorization Act, cosponsored by Senator King,would extend the Rural Community Hospital Demonstration (RCHD) for another five years, enabling rural hospitals to continue delivering quality care to the communities across Maine and the country.

RCHD is a program that pays higher reimbursement rates for select small rural hospitals (with fewer than 51 beds) that otherwise do not qualify as Critical Access Hospitals (CAHs) for covered Medicare inpatient hospital services. This program thus protects access to essential healthcare services for local communities in Maine by increasing the hospitals' financial viability and capacity.

"In many rural communities, the local hospital is more than a health care provider-it's a source of good-paying jobs, and often the difference between receiving care close to home or driving hours to get critical medical care," said Senator King. "But after the party-line passage of the Big Beautiful Bill last year resulted in shuttered hospitals and limited access to care, America's rural health care providers are fighting to keep their lights on and communities healthy. The Rural Community Hospital Demonstration Reauthorization Act will strengthen access to care in underserved areas while giving hospitals greater financial stability. I'm pleased the Senate has passed this bipartisan legislation to extend the RCHD, and I'll continue working to ensure rural hospitals in Maine and across the country have the resources they need to serve their communities."

A 2025 report from the Centers for Medicare & Medicaid Services found that participating RCHD hospitals significantly improved their Medicare margins and increased capital investments, resulting in stronger financial conditions that helped with staff retention. In addition to Maine, twelve other states have hospitals in the program: Colorado, Alaska, Iowa, Kansas, Vermont, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, South Dakota, and Wyoming. Maine's two participating RCHD hospitals were previously noted as at risk of financial distress or closure due to the passage of the Big Beautiful Bill last year, making reauthorization of the RCHD even more important.

The bill now heads to the House of Representatives; the RCHD was previously extended in the Consolidated Appropriations Act, 2021 (enacted in December 2020).

Joining King on the legislation are U.S. Senators Jerry Moran (R-KS), Chuck Grassley (R-IA), Michael Bennet (D-CO), Mike Crapo (R-ID), Ron Wyden (D-OR), Dan Sullivan (R-AK), Ben Ray Luján (D-NM), Cindy Hyde-Smith (R-MS), Peter Welch (D-VT), Lisa Murkowski (R-AK), Jeff Merkley (D-OR), Pete Ricketts (R-NE), Martin Heinrich (D-NM), James Lankford (R-OK), and John Hickenlooper (D-CO).

Senator King has been a staunch supporter of rural healthcare outcomes and opportunities across Maine. Last year, he joined bipartisan legislation to expand telehealth access through Medicare, making it easier for patients to connect with their providers.

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