Please note that this post contains affiliate links and any sales made through such links will reward MageeNews.com a small commission – at no extra cost to you.
Rural Community Hospital Demonstration Provides Lifeline to Rural Communities, Including Six in Mississippi
WASHINGTON, D.C. – U.S. Senator Cindy Hyde-Smith (R-Miss.) today highlighted bipartisan legislation she’s joined to extend a federal health program that provides a financial lifeline to rural hospitals, including six participating facilities in Mississippi.
The Rural Community Hospital Demonstration Reauthorization Act (S.4460) would reauthorize the Rural Community Hospital Demonstration (RCHD) program for another five years. Rural hospitals in the RCHD program are allowed to test innovative Medicare hospital payment models that improve financial sustainability and support health care access.
“A five-year reauthorization of the RCHD program is just commonsense. The program has proven to be a cost-effective way for small rural hospitals to remain viable through enhanced Medicare reimbursements,” Hyde-Smith said. “I’ve fought to get Mississippi hospitals enrolled in this program and will continue to find ways to maintain access to rural health care.”
U.S. Senator Chuck Grassley (R-Iowa) introduced S.4460, which has been referred to the Senate Finance Committee.
“The Rural Community Hospital Demonstration program gives rural hospitals a better shot at keeping their doors open to provide care for the community. With a proven track record of more than two decades, this program gives eligible hospitals financial stability to keep healthcare close to home for Iowans. While there’s more to be done, our Rural Community Hospital Demonstration Reauthorization Act is a key step to provide continued support for rural health care in America,” Grassley said.
Hyde-Smith worked with Grassley previously to pressure the Centers for Medicare & Medicaid Services (CMS) under the Biden administration to enroll more rural hospitals, as authorized, in RCHD. In November 2024, CMS agreed, which led to the Greenwood Leflore Hospital, Magee General Hospital, and Wayne General Hospital becoming RCHD participants in April 2025. They joined Anderson Regional Medical Center in Meridian, Highland Community Hospital in Picayune, and Marion General Hospital in Columbia as RCHD facilities.
The most recent performance data found that new RCHD hospitals significantly improved their Medicare margins and had higher capital investments, resulting in stronger financial conditions and helping with staff retention. These hospitals are mostly paid using a reasonable cost-based methodology instead of the inpatient prospective payment system. Today, CMS has filled all 30 spots for the RCHD program.
In addition to Hyde-Smith, S.4460 is cosponsored by Senate Finance Committee Chairman Mike Crapo (R-Idaho) and Ranking Member Ron Wyden (D-Ore.), as well as U.S. Senators Michael Bennet (D-Colo.), Dan Sullivan (R-Alaska), Ben Ray Luján (D-N.M.), Peter Welch (D-Vt.), Jerry Moran (R-Kan.), Angus King (I-Maine), Lisa Murkowski (R-Alaska), Jeff Merkley (D-Ore.), Pete Ricketts (R-Neb.), Martin Heinrich (D-N.M.), James Lankford (R-Okla.), and John Hickenlooper (D-Colo.).
The RCHD legislation is the latest bipartisan measure Hyde-Smith has thrown her support behind to improve rural health care delivery.
- The Rural Health Innovation Act (S.4204) addresses workforce shortages and long travel times for emergency care by strengthening support for Federally Qualified Health Centers and Rural Health Clinics, of which there are approximately 240 in Mississippi.
- The Save Struggling Hospitals Act (S.4233) would ensure hospitals in rural and low-wage areas receive fair Medicare reimbursement for the essential services by codifying the Medicare low-wage index hospital policy that increased Medicare wage index values for hospitals in the bottom 25th percentile.
MageeNews.com is the online news source for Simpson and surrounding counties as well as the State of Mississippi
