US Senators Blackburn, Kaine, and Warner introduce bill to prevent further closures to rural hospitals

A bipartisan bill involving three of four US Senators in Tennessee and Virginia seeks to provide additional financial support to rural hospitals to help prevent their closures.

The Save Rural Hospitals Act of 2021 has been introduced by Virginia Senators Tim Kaine and Mark Warner, as well as Tennessee Senator Marsha Blackburn. The measure is aimed at reimbursing hospitals for their services by the federal government by establishing a national Medicare Area Wage Index at 0.85, a formula that currently reimburses rural hospitals at a much lower rate because of differing labor costs.

“In rural communities all over America, having a local hospital, as opposed to having to travel long distances for care, can mean the difference between life and death. Unfortunately, the COVID-19 crisis has only exacerbated the financial instability many of these facilities were already facing, putting them at greater risk for closure,” said Sen. Warner. “That’s why we’ve got to level the playing field for federal reimbursement rates so that rural hospitals have a fighting chance at keeping their doors open and continuing to provide lifesaving care.”

“Rural hospital closures mean a loss of access to medical care for the millions of Americans who chose to live in those areas. In addition, when a rural hospital closes, a community often loses one of its largest employers. Rural hospital closures are devastating to those communities. Rural hospitals have closed in record numbers in recent years and Tennessee is at the top of the list for the number of facilities lost. One contributing facture is an unfair reimbursement system that favors urban hospitals over rural, the Medicare area wage index. The Save Rural Hospitals bill is bipartisan legislation to create a floor to this calculation that will be a lifeline for the 1 in 4 rural hospitals that are in danger of closing. According to CMS, over 50 hospitals in TN stand to benefit from this legislation. When the rural hospitals benefit, communities benefit. This legislation will protect access to health care for millions of Tennesseans,” said Sen. Blackburn.

“Too often, rural hospitals don’t have the necessary support they need to continue providing care for their local communities,” said Sen. Kaine. “With the increased pressure they’ve faced over the last year, it’s so important for Congress to pass this bipartisan legislation to ensure rural hospitals across the country — including 19 in Virginia— have access to the necessary resources to stay afloat and continue serving their communities amid COVID-19.”

The legislation is working to prevent further rural hospital closures as 20 hospitals closed their doors alone in 2020 due to the pandemic. Lawmakers say numerous Southwest Virginia hospitals would financially benefit should the bill be signed into law, including the following:

*Johnston Memorial Hospital (Abingdon, VA)

*Lonesome Pine Hospital (Big Stone Gap, VA)

*Twin County Regional Healthcare, Inc. (Galax, VA)

*Buchanan General Hospital (Grundy, VA)

*Smyth County Community Hospital (Smyth, VA)

*Norton Community Hospital (Norton, VA)

*Wellmont Mountain View Regional Medical Center (Norton, VA)

*Clinch Valley Medical Center (Richlands, VA)

*Russell County Medical Center (Russell, VA)

*Carilion Tazewell Community Hospital (Tazewell, VA)

*Wythe County Community Hospital (Wytheville, VA)