Congressman David Kustoff Introduces Bipartisan Save Struggling Hospitals Act

WASHINGTON - Congressman David Kustoff (R-TN) and Congresswoman Terri Sewell (D-AL) introduced the bipartisan Save Struggling Hospitals Act, legislation to fix Medicare payment formulas that do not account for the cost pressures facing hospitals in rural and lower-wage areas. Senator Marsha Blackburn (R-TN) and Senator Mark Warner (D-VA) are leading companion legislation in the Senate.

"Access to health care should not depend on a person's ZIP code," said Congressman Kustoff. "Many rural hospitals are held back by outdated payment policies that fail to account for the challenges they face. I am proud to introduce this legislation to support these hospitals so they can keep their doors open and continue serving patients who depend on them every day."

"Alabama has endured some of the most devastating hospital closures in the nation. Each one leaves families traveling farther for care, mothers delivering babies without nearby maternity units, and seniors losing access to the doctors they've trusted for decades," said Rep. Sewell. "The introduction of the Save Struggling Hospitals Act could not come at a more critical moment. By strengthening the financial foundation of vulnerable hospitals, this bill offers a lifeline to communities that have consistently been asked to do more with less. It will help hospitals keep their doors open so that patients get th e care they need, regardless of their ZIP code."

Background:

Hospitals in West Tennessee and across the country serve as a critical point of care, but many continue to face challenges due in part to wage index calculations that do not reflect local economic conditions. Recent data shows over 40 percent of rural hospitals are operating at a loss, with more than 400 at risk of closure, underscoring the need for targeted, responsible reforms.

Under current law, Medicare's payment structure can leave hospitals in certain regions at a disadvantage, undercutting its intent to support access to care across all

communities. From fiscal years 2020 through 2024, Medicare included a policy to help address this imbalance, but it has since been removed, creating renewed uncertainty for hospitals that rely on it. The Save Struggling Hospitals Act permanently restores the wage index adjustment, helping ensure these hospitals are treated more fairly within the system.

Click here to read the full text of the bill.