Salinas, Moolenaar, Tokuda, Moylan Lead Bipartisan Effort to Save Rural Hospitals and Clinics

Washington, D.C. - Today, Congresswoman Andrea Salinas (OR-06), alongside Congressman John Moolenaar (MI-02), Congresswoman Jill Tokuda (HI-02), and Congressman James Moylan (Guam-AL) introduced a bipartisan bill to strengthen the nation's rural health care infrastructure and ease financial pressures faced by hundreds of rural hospitals across the country. The bipartisan Rural Health Care Facilities Revitalization Actauthorizes rural health facilities to use federal USDA funds to refinance debt, update technology, and support operating expenses to ensure their long-term financial stability.

"Oregonians living in rural areas deserve to have health care in their communities. They shouldn't have to drive to an urban center for medical care or worry about delivering a baby in the car," said Rep. Salinas. "When a rural hospital struggles or closes, the entire community feels it. Our bipartisan bill helps rural providers stay afloat so they can keep providing care to the people who live nearby. It would secure federal funding for rural facilities to upgrade outdated equipment and improve operations so providers can keep their doors open and continue delivering lifesaving care to those who rely on them."

"Residents of rural communities in Michigan deserve to have continued access to high quality care at their local health care facilities," said Rep. Moolenaar. "The financial burdens experienced by rural hospitals risks residents losing access to life saving care. The Rural Health Care Facilities Revitalization Act allows hospitals to improve access with federal dollars to support the changing needs of patients including upgrading tele-health services. I am proud to join this bipartisan effort to sustain access to health care services in our communities and ensure these hospitals can expand valuable services to rural residents."

"As an island state, Hawaiʻi faces uniquely high costs, aging hospital infrastructure, and serious challenges in maintaining access to care for our rural and remote communities. Rural health care facilities across my district are struggling to modernize, stay financially solvent, and recruit and retain health care workers," said Rep. Jill Tokuda. "By making sure rural facilities have what they need to upgrade telehealth capacity, address mounting debt, and invest in modern medical equipment, we can make rural health care more resilient, reliable, and sustainable for the long term. That's why I'm proud to join my colleagues in introducing the Rural Health Care Facilities Revitalization Act-legislation that recognizes the financial realities facing rural providers and gives them the tools they need to remain open and accessible for patients."

"For island communities like Guam, access to health care comes with unique challenges-geographic isolation, higher supply costs, workforce shortages, and limited capacity," said Congressman Moylan. "Our hospitals and clinics operate without the margins many mainland systems rely on, yet they remain the frontline for our families. The Rural Health Care Facilities Revitalization Act gives smaller and remote health systems the flexibility to modernize and strengthen care. I am proud to support this legislation to help ensure our people can access quality care right here at home."

Since 2010, nearly 190 rural hospitals nationwide have closed their doors, forcing rural residents to travel about twenty miles further on average for common health services. Among remaining rural hospitals, financial challenges have led to the elimination of essential departments and services, including chemotherapy and obstetrics. There is growing concern that even more rural health facilities will be forced to shut down.

The Rural Health Care Facilities Revitalization Actwould address this concern by allowing rural health care facilities, including hospitals, mobile health care clinics, home health agencies, and long-term care facilities, to use Community Facility Loans or loan guarantees under the U.S. Department of Agriculture to:

• Refinance debt, which will help facilities manage their financial obligations;
• Update telehealth services, medical equipment, and online databases, which will ensure these facilities can provide up-to-date services with digital technology;
• Support ancillary needs, including operating expenses and reserve funds, which will help position rural health care facilities for long-term stability; and
• Allow the Secretary of Agriculture to waive credit requirements for facilities in financial distress or vulnerable areas.

The legislation would ensure that rural health care facilities have the necessary support to keep their doors open and continue providing life-saving and timely care to thousands of people.

"The National Rural Health Association applauds Representatives Salinas, Moolenaar, Tokuda, and Moylan's work on the Rural Health Care Facilities Revitalization Act," said Alan Morgan, Chief Executive Officer of the National Rural Health Association. "Rural health facilities are critical community institutions that help keep care local; however, they often operate on thin or negative margins. This legislation will ensure that these facilities can access federal assistance to improve their financial position and make needed health IT updates. We thank the Representatives for their leadership on protecting rural access to care."

Full text of the Rural Health Care Facilities Revitalization Actcan be found by clicking here.

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