Numbers show that rural hospitals are closing at an alarming rate. According to reports, more than 130 rural hospitals across the country have closed since 2010, and during the COVID-19 pandemic, rural hospital closures accelerated to record levels with more than 20 rural hospitals closing in 2020. Georgia is not immune, having experienced the impacts of the closures as patients are sometimes being forced to drive hours for care.
Earlier this week, Rep. Drew Ferguson, R-GA, joined Rep. Terri Sewell, D-AL, to introduce the Save Rural Hospitals Act of 2023. Members of the Georgia delegation, Rep. Buddy Carter, R-GA, and Rep. Rick Allen, R-GA, joined Ferguson in his efforts as co-signers on the bill.
According to Ferguson, this legislation would help curb hospital closures in rural communities by ensuring fairness in Medicare hospital payments.
“Rural hospitals play an essential role in serving their communities and providing vital care to patients,” said Ferguson. “Georgia has one of the lowest reimbursement rates nationwide, and the Save Rural Hospitals Act would help put rural hospitals in the Peach State – and across the country – on a level playing field by raising their Medicare reimbursement levels. I am proud to work with Representative Sewell on this bipartisan legislation.”
Ferguson explains that low patient volumes and significant financial strain are often the primary factors in these closures and are compounded by the flawed Medicare Area Wage Index that results in rural hospitals receiving disproportionately lower reimbursement rates than that of their urban counterparts.
This legislation, Ferguson said, would establish an appropriate national minimum (0.85) for the Medicare Area Wage Index to ensure that rural hospitals receive their payment for the care they provide. The Save Rural Hospitals Act of 2023 would also help ensure fairness in reimbursements for hospitals across the country — including the many hospitals that are facing closures in rural areas — and fix severe and disproportionate disadvantages that unfairly penalize hundreds of communities and hospitals across the country.
