Congressman Flood Co-Leads Bill Extending Key Rural Community Hospital Program

WASHINGTON, D.C. - Today, U.S. Representatives Mike Flood (R-NE), Randy Feenstra (R-IA), Jared Golden (D-ME), and Janelle Bynum (D-OR) introduced the "Rural Community Hospital Demonstration Reauthorization Act" as co-leads, with Representatives Adrian Smith (R-NE) and Tracey Mann (R-KS) joining as original cosponsors. The bill extends the Rural Community Hospital Demonstration (RCHD) program for an additional five years and allows facilities that previously cycled out of the program, as well as those set to cycle out in 2026, to rejoin.

"Rural community hospitals are critical lifelines for families across the country," said Congressman Flood (R-NE). "The RCHD program is a much-needed tool with an outstanding track record of helping rural community hospitals deliver high-quality care to patients. This program is vital to many Nebraskans, and I am pleased to join Congressman Feenstra in extending this impactful program for another five years as a co-lead."

"By reauthorizing the Rural Community Hospital Demonstration, we are ensuring rural hospitals have the support they need to keep their doors open and continue providing the essential services that keep Iowa's economy strong, families healthy, and communities thriving," said Congressman Feenstra (R-IA). "With a proven track record, this program provides rural hospitals with the financial stability needed to sustain health care services in our communities and ensure patients continue to have access to quality care close to home. I am honored to help lead this legislation in the House and strengthen support for Iowa's rural hospitals."

"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 NHA is grateful to Congressman Flood for supporting the 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," said President and CEO of the Nebraska Hospital Association Jeremy Nordquist.

"The Rural Community Hospital Demonstration has been essential to the sustainability of Columbus Community Hospital and the care we provide across our region. Over the past 20 years, the inpatient cost-based reimbursement model has enabled us to maintain critical services, recruit providers, and invest in modern facilities and technology. It has also allowed us to expand access to advanced care-including the development of local cancer services-so patients can receive treatment close to home. Without the demonstration, many of these services would not be financially viable in a rural setting," said President and CEO of Columbus Community Hospital Michael T. Hansen.

RCHD hospitals have been found to significantly improve their Medicare margins, make higher capital investments resulting in stronger financial conditions, and improve staff retention. The RCHD program has been reauthorized three times since 2003.