In May, Sens. Charles Schumer (D-N.Y.) and Chuck Grassley (R-Iowa) proposed a bill that would extend the Medicare-Dependent Hospital Program and the Low-Volume Hospital Program an extra year for rural hospitals through September 2013. The MDH Program provides special Medicare rates to roughly 200 rural hospitals in the United States that rely heavily on Medicare. The LVH Program establishes enhanced Medicare rates to rural hospitals that may not serve a high volume of patients in general.
The American Hospital Association supported the legislation, saying it would help the country’s rural healthcare providers who are “more financially vulnerable” to the variations in Medicare reimbursements and Medicare volumes.
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