Following Grassley’s Urging, CMS Takes Action on Vital Rural Hospital Program

Following Grassley's Urging, CMS Takes Action on Vital Rural Hospital Program

WASHINGTON - Sen. Chuck Grassley (R-Iowa) welcomed the Centers for Medicare & Medicaid Services (CMS)'s decision to develop a request for application for rural hospitals to make use of 10 available spaces in its Rural Community Hospital Demonstration (RCHD) program. Grassley - citing the program's efficacy and qualifying hospitals' interest - has spent nearly two years pushing CMS to open RCHD applications and fill empty spaces.

"I'm glad to see CMS answer my years-long call and give more rural hospitals a chance to thrive. By fully utilizing this program, rural hospitals will have a better shot at keeping their doors open so they can provide needed services for their local communities," Grassley said. "CMS should take swift action to begin collecting, reviewing and approving these applications."

Background:

The RCHD program boosts financial viability for rural hospitals that are too large to be Critical Access Hospitals and too small to benefit from Medicare's hospital inpatient prospective payment system. Congress created the RCHD in 2003 and has reauthorized it three times.

Grassley's Continued Advocacy:

Last year, Grassley secured a commitment from Health and Human Services Secretary Xavier Becerra that his agency would "do more" to support struggling rural hospitals. Grassley followed up by urging CMS to open RCHD spots. At Grassley's request, CMS spoke with Iowa facilities looking to participate in the RCHD program. However, after months of inaction, Grassley questioned Secretary Becerra about his failure to fill program openings and penned a letter with Senator Cindy Hyde-Smith (R-Miss) to CMS reminding the agency it should be wielding every tool available to help rural hospitals.

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