What They’re Saying: Leaders Across the Nation Applaud Senate Passage of Bennet, Grassley Legislation to Extend Rural Hospital Program

Jun 3, 2026 | Press Releases

Denver - Over a dozen rural hospital leaders from across Colorado and the United States are praising the unanimous Senate passage of the Rural Community Hospital Demonstration Reauthorization Act, led by Colorado U.S. Senator Michael Bennet, co-chair of the Senate Rural Health Caucus, and Iowa U.S. Senator Chuck Grassley.

The bipartisan, bicameral legislation provides a lifeline to rural hospitals by extending the Rural Community Hospital Demonstration (RCHD) for another five years, allowing hospitals to continue testing innovative hospital payment models under Medicare that boost financial sustainability and improve rural access to care.

Currently, four Colorado hospitals participate in RCHD: Delta Health, Valley View Medical Center, Montrose Regional Health, and San Luis Valley Health.

In addition to Colorado, 12 other states have hospitals in the program: Iowa, Alaska, Kansas, Maine, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, South Dakota, Vermont, and Wyoming.

"We appreciate Senator Bennet and Senator Grassley's leadership in supporting policies that recognize the challenges facing rural hospitals. The Rural Community Hospital Demonstration program provides a practical, proven approach to sustaining access to care by aligning Medicare payment with the real costs of providing services in rural communities. This program is about keeping care local, to ensure Colorado residents can receive timely, high-quality care, close to home," said Jeff Tieman, Colorado Hospital Association's President and Chief Executive Officer.

"Montrose Regional Health is proud to support Senator Bennet's leadership in advancing a five-year extension of the Rural Community Hospital Demonstration program. This program is critical to sustaining access to high-quality care in rural communities like ours. It provides the stability and flexibility needed to navigate the unique financial and operational challenges we face, while continuing to invest in services that keep care close to home. We appreciate Senator Bennet's ongoing commitment to strengthening rural healthcare across Colorado," said Jeff Mengenhausen, Montrose Regional Health's Chief Executive Officer

"As a rural health system serving the San Luis Valley, we are already seeing the benefits of participating in the Rural Community Hospital Demonstration Program," said Konnie Martin, San Luis Valley Health's Chief Executive Officer. "This program is helping us strengthen our financial footing and bring in the resources we need to preserve critical services for our community. As the only provider of Level III trauma and obstetric care within a 120-mile radius, our ability to remain open and fully operational is essential. The care we provide is not only vital to the health of our region, but also to its economic stability as the largest employer in the San Luis Valley. Senator Bennet's legislation to extend this program will help ensure rural hospitals like ours can continue to serve our communities for years to come."

"Rural hospitals like Delta Health operate on incredibly thin margins while serving vulnerable patient populations across Delta County," said Nick Colleran, Delta Health's Interim Chief Executive Officer and Chief Operating Officer. "The Rural Community Hospital Demonstration Program has been a lifeline for our rural hospital, providing the stable, predictable reimbursement we need to keep our doors open and continue delivering essential services, such as oncology care, to our community. At a time when we are facing mounting financial challenges such as our 2025 Medicare loss on charges of $45,161,765.00, as well the loss of critical resources and increasing administrative burdens, this program offers real, immediate support - not theoretical funding. Senator Bennet's legislation to extend the Rural Community Hospital Demonstration Program is exactly the kind of commonsense solution rural providers need. It will help ensure that hospitals like Delta Health can continue to care for patients in the Western Slope for the next 100 years."

"Valley View has participated in the Rural Community Hospital Demonstration Program since 2017. The program has provided crucial support that allows Medicare patients to receive high quality care close to home. Continued participation in the program is essential to preserving critical services, maintaining staffing stability, and ensuring that rural Medicare beneficiaries can continue to receive high quality care in their own communities. Without this support, access to vital inpatient, specialty, and outreach services would be at risk for the residents who rely on us most," said Brian Murphy, Valley View Hospital's Chief Executive Officer.

"The American Hospital Association applauds the Senate passing the Rural Community Hospital (RCH) Demonstration Reauthorization Act, which allows hospitals to continue providing essential care in their communities by supporting the financial stability of participating rural hospitals. Hospitals with 50 beds or less are some of the most vulnerable to closure, and the RCH demo offers an important model to maintain access in rural communities around the country. This bipartisan legislation gives more certainty for America's rural hospitals," said Lisa Kidder Hrobsky, Senior Vice President for Advocacy and Political Affairs.

"The National Rural Health Association (NRHA) is grateful to see the introduction of the Rural Community Hospital Demonstration (RCHD) Reauthorization Act, led by Senator Grassley and Senator Bennet. This bill would provide a 5-year extension of the RCHD Program, which offers much-needed support for small rural hospitals through enhanced Medicare reimbursement. The RCHD Program has demonstrated improvement in Medicare inpatient margins for participating rural hospitals and has been crucial in helping rural hospital leaders maintain rural hospital viability," said Alan Morgan, CEO, National Rural Health Association.

Bennet remains committed to ensuring that Coloradans in rural areas have access to the best health care available. In March, Bennet joined U.S. Senator Jerry Moran (R-Kan.) to introduce the Rural Hospital Revitalization Act, which would provide zero-interest loans through the U.S. Department of Agriculture (USDA)'s Community Facilities Program to qualifying hospitals for new construction or renovation of existing hospital facilities. In February, Bennet celebrated the passage of six of his health care bills: the Accelerating Kids Access to Care Act, REAL Health Providers Act, Medicare Multi-Cancer Early Detection Screening Coverage Act, Give Kids a Chance Act, PREEMIE Act Reauthorization, and Prescription Drug Supply Chain Pricing Transparency Act.

In November 2025, Bennet joined Senators John Barrasso (R-Wyo.), Tina Smith (D-Minn.), and Marsha Blackburn (R-Tenn.) in designating November 20, 2025, as National Rural Health Day. In July 2025, Bennet and Barrasso introduced the Accelerating the Development of Advanced Psychology Trainees Act, bipartisan legislation to increase access and coverage to behavioral, psychological, and mental health services in rural areas. In April 2025, Bennet and Representative Jeff Hurd (R-Colo.) held a roundtable discussion with rural health providers on the Western Slope to discuss challenges to providing high-quality care in Colorado's rural communities.

Bennet has also been a longtime champion for the RCHD program, having led the most recent reauthorization. In May 2020, Bennet joined U.S. Senators Lisa Murkowski (R-Alaska) and Dan Sullivan (R-Alaska) to introduce legislation to extend the RCHD Program for an additional five years, ensuring these essential hospitals do not face further budget instability during such challenging times.

In addition to Grassley and Bennet, Senate Finance Committee Chairman Mike Crapo (R-Idaho) and Ranking Member Ron Wyden (D-Ore.), as well as Senators Dan Sullivan (R-Alaska), Ben Ray Luján (D-N.M.), 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.), Martin Heinrich (D-N.M.), James Lankford (R-Okla.) and John Hickenlooper (D-Colo.) cosponsored this legislation.

The text of the bill is available HERE.

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