What They Are Saying: Rural Hospitals Across America Welcome Passage of Grassley-Bennet Legislation to Extend Rural Hospital Program

What They Are Saying: Rural Hospitals Across America Welcome Passage of Grassley-Bennet Legislation to Extend Rural Hospital Program

BUTLER COUNTY, IOWA - Over a dozen rural hospital leaders from across Iowa and the United States are praising the unanimous Senate passage of the Rural Community Hospital Demonstration Reauthorization Act, led by U.S. Sens. Chuck Grassley (R-Iowa) and Michael Bennet (D-Colo.).

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 Iowa hospitals participate in RCHD: Spirit Lake, Newton, Fort Dodge and Grinnell. Rep. Randy Feenstra (R-Iowa) introduced companion legislation in the House of Representatives.

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

Iowa Support:

Iowa Hospital Association (Chris Mitchell, President and CEO):

"The Rural Community Hospital Demonstration has been critical in supporting financial viability for participating Iowa hospitals, as well as preserving access to care for patients in communities with few, or no, nearby care options. The program's structure provides stability hospitals need to plan effectively for the future and continue to serve Medicare patients close to home. Extending the program for another five years will build upon a proven model that benefits rural patients, providers as well as the Medicare program. I'm glad the U.S. Senate recognizes the importance of this program and passed legislation swiftly to extend it."

Lakes Regional Healthcare (Jason Harrington, President and CEO):

"The Rural Community Hospital Demonstration (RCHD) program has been critically important to the sustainability of Lakes Regional Healthcare in Spirit Lake, Iowa. Through participation in the RCHD, Lakes Regional Healthcare has been able to maintain financial stability, reinvest in our facility, recruit and retain essential staff, and continue offering high-quality care close to home. The hospital serves as both a critical health care provider and a key economic anchor. Reauthorization of the RCHD is essential to ensuring that hospitals like Lakes Regional Healthcare can continue to meet the growing needs of our Medicare population and the communities we serve. I'm grateful to see the U.S. Senate quickly pass the Rural Community Hospital Demonstration Reauthorization Act to extend this critical program and I thank Senator Grassley for his leadership on this legislation."

MercyOne Central Iowa Division (Dr. Kurt Andersen, President):

"As MercyOne and the health care industry face many headwinds, we are grateful for Senator Grassley for advancing solutions to help provide support and sustain access for our most vulnerable communities. We applaud the U.S. Senate's unanimous action to pass the Rural Community Hospital Demonstration Reauthorization Act. We look forward to continuing to work with Congress to advance additional policies to ensure access to care."

UnityPoint Health - Fort Dodge Market (Leah Glasgo, President):

"The Rural Community Hospital Demonstration program is essential to the sustainability of our rural hospital. Rural providers are facing increasing pressure from all sides-payers, rising pharmaceutical costs, and escalating supply expenses-while continuing to care for communities with limited resources and greater health needs. This program delivers critical financial stability, enabling us to sustain essential services, invest in our workforce, and ensure patients can access care close to home. Without this support, rural hospitals would face even greater challenges in maintaining timely, high-quality care. We sincerely appreciate the U.S. Senate's unanimous passage and Senator Grassley's continued support of this program's reauthorization."

UnityPoint Health - Grinnell (President David-Paul Cavazos):

"At UnityPoint Health - Grinnell Regional Medical Center, we are seeing firsthand the strain that rising costs, workforce shortages and growing demand for services like maternity care place on rural hospitals. This legislation represents a critical investment in the stability and future of rural health care. It will help strengthen and sustain essential hospital services, ensuring patients can continue to access safe, reliable care in their own communities. We appreciate the U.S. Senate's action to pass the Rural Community Hospital Demonstration Reauthorization Act and the leadership of Senator Chuck Grassley in advancing solutions that recognize the urgency of sustaining rural health care and the communities that depend on it."

National Support:

American Hospital Association (Lisa Kidder Hrobsky, Senior Vice President for Advocacy and Political Affairs):

"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."

Colorado Hospital Association (Jeff Tieman, President and CEO):

"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."

Alaska Hospital & Healthcare Association (Jared C. Kosin, President and CEO):

"AHHA supports the straightforward, five-year extension of the RCH Demonstration program and is grateful for its passage in the Senate. The financial stability the program provides has been vital to Alaska's participating hospitals in bolstering their ability to maintain local access to healthcare and emergency services across their communities and regions."

Kansas Hospital Association (Chad Austin, President and CEO):

"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. Kansas hospitals appreciate the U.S. Senate's passage of legislation to renew this long-standing program for an additional five years. This extension will help provide continued stability for participating hospitals in Kansas and beyond and the patients and communities they serve for years to come."

Maine Hospital Association (Jeffrey Austin, President):

"Maine is one of the oldest and most rural states in the nation. Access to care is a challenge and getting more difficult as the growth in costs exceed the growth in revenues. Maine hospitals need creative solutions to this issue. The Rural Community Hospital Demonstration program has helped stabilize the finances for participating Maine hospitals. We wholeheartedly support its reauthorization and its continued support for rural Maine."

Mississippi Hospital Association (T. Richard Roberson, President and CEO):

"Rural hospitals face unique challenges in caring for their communities. The Mississippi Hospital Association appreciates the continued commitment of Senator Grassley, and Mississippi's Senators Roger Wicker and Cindy Hyde-Smith to support rural hospitals through the Rural Community Hospital Demonstration Program. This successful program allows tens of thousands of Mississippians to receive hospital care close to home and we support its continued expansion."

Nebraska Hospital Association (Jeremy Nordquist, President and CEO):

"The goal of keeping our rural hospitals and the critical services they provide open and accessible demands collaboration from lawmakers, providers, and local communities. It also requires the utilization of innovative models to sustain rural health care services. That is why the Nebraska Hospital Association is grateful to the Senate for supporting the Rural Community Hospital Demonstration (RCHD) program. The loss of this program would threaten hospital stability, leading to service line cuts or closures. Participation in the RCHD keeps certain rural hospitals from falling through the cracks, helping them remain open to serve rural beneficiaries."

New Mexico Hospital Association (Troy Clark, President and CEO):

"We thank the U.S. Senate for passing, and Sen. Grassley for supporting, the extension of the Rural Community Hospital Demonstration Program, a CMS program in which two New Mexico hospitals participate. This is an important step toward protecting healthcare access in rural America and supporting rural hospitals that operate under extraordinary financial pressures while serving as lifelines for their communities."

Oklahoma Hospital Association (Rich Rasmussen, President and CEO):

"In Oklahoma, three hospitals currently benefit from the Rural Community Hospital designation, and the program is helping strengthen their ability to continue serving patients and communities that rely on local access to care. The impact extends well beyond hospital walls - supporting access to emergency services, specialty care, local jobs, and the broader health and economic stability of the communities they serve. The Oklahoma Hospital Association applauds Senator Grassley and Senator Bennet for their leadership and recognition that rural hospitals are far more than healthcare providers - they are economic engines, critical community assets, and often the backbone of their communities. Supporting programs such as the RCH demonstration means protecting access to care, preserving local healthcare infrastructure, and ensuring rural communities have the resources necessary to remain healthy and strong for generations to come."

Hospital Association of Oregon (Becky Hultberg, President & CEO):

"With more than 30% of Oregonians living in rural or frontier areas, rural hospitals are vital to the health and well-being of communities. However, rural hospitals are under increasing financial pressure, putting access to care and the stability of local economies at risk. The Hospital Association of Oregon appreciates Senator Wyden and Merkley and Representative Bynum's leadership on these challenges. We support the Rural Community Hospital Demonstration program which offers a pragmatic, proven approach to sustaining access to care for a group of small rural hospitals by aligning their Medicare payments with the real costs of providing care."

South Dakota Association of Healthcare Organizations (Tim Rave, President and CEO):

"Many rural hospitals face financial uncertainty from low patient volumes, sicker patient populations, a challenging payer mix, geographic isolation, and shifts in care delivery. The Rural Community Hospital (RCH) Demonstration Extension Act 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. The AHA thanks Senator Grassley and Senator Bennet for their strong leadership to support America's rural hospitals."

Vermont Association of Hospitals and Health Systems (Michael Del Trecco, President and CEO):

"Rural community hospitals are the backbone of healthcare access in many regions, and in Vermont our families, friends, and neighbors depend on having care close to home. This Senate and House bill recognizes the importance of sustaining these essential institutions so patients can continue to receive high-quality care in the communities where they live."

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