The Department of Health and Human Services has expanded the Rural Community Hospital demonstration program.
In addition to the 10 hospitals already participating in the program, up to 20 small rural hospitals in selected states will be eligible for enhanced reimbursement for inpatient services. The expansion was made possible through the Affordable Care Act.
"One in five Americans lives in a rural area and small community hospitals are often their only source of care," said Health and Human Services Secretary Kathleen Sebelius. "This demonstration project and other important investments in hospitals, infrastructure and the healthcare workforce will help ensure that Americans living in rural communities can get the quality health services they need."
The program will pay participating hospitals under a cost-based methodology for inpatient hospital services furnished to Medicare beneficiaries for an additional five years, Sebelius said.
To qualify for the program, a rural community hospital must be located in a designated rural area, have fewer than 51 beds, provide 24-hour emergency care services and not be designated as a critical access hospital under the ACA.
According to Sebelius, the expansion of the rural community hospital demonstration is meant to work hand-in-hand with other federal funding for boosting rural care.
On Sept. 10, HHS officials announced a $20 million program to help rural and critical access hospitals implement healthcare information technology. Some 1,655 critical access and rural hospitals in 41 states and Indian reservations stand to benefit from this assistance.
In June, HHS officials appointed a committee to review and update the criteria used to define medically underserved areas and health professional shortage areas.
Mary Wakefield, administrator of the Health Resources and Services Administration, said every effort was made to maintain a geographic and demographic representation for the committee. The committee plans to issue a report on its work by next year.
The American Hospital Association said it would continue to lobby for federal assistance for rural hospitals. These hospitals have modest assets, typically serve an older population and face "great pressures" as government payments decline, AHA officials said.