Senate bill targets rural ER closures with $1M annual payments

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In a bid to curtail U.S. emergency department closures, two senators introduced a bill June 24 that seeks to provide rural emergency rooms at least $1 million each year over the next decade. 

Senators Josh Hawley, R-Mo., and Maggie Hassan, D-N.H., said the proposed legislation would stymie future closures of rural emergency services. Healthcare organizations have steadily closed EDs for several reasons, including financial strain and shifting patient needs. The senators said the U.S. has lost nearly 200 rural EDs since 2005. 

The bill, titled the “Rural Hospital Emergency Room Guarantee Act,” proposes establishing a 10-year program that allots $1 million, paid on a quarterly basis, to rural ERs. If passed, the legislation would also expend up to $250,000 in one-time emergency payments to rural hospitals at risk of closure. 

Rural ERs could also receive additional funds based on their payer mix, acuity index, past financial history and community’s economic conditions. 

To be eligible, the ERs must operate 24 hours a day and be a designated rural health facility; they cannot have private-equity or venture-capital ownership. 

The funds could be used for “normal operating expenses,” such as staffing, but not for executive pay, other facilities or projects unrelated to the ER’s operations, according to the bill.

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