Senate Bill to Extend Medicare Payment Programs for Rural Hospitals

U.S. Sens. Charles Schumer (D-N.Y.) and Chuck Grassley (R-Iowa) introduced a bill yesterday 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 affects roughly 200 rural hospitals in the United States, and it provides special Medicare rates to these hospitals because they have high populations of Medicare patients. A hospital qualifies for the MDH Program if it is located in a rural area, has 100 beds or fewer, is not a "sole community hospital" and has at least 60 percent of inpatient days or discharges covered by Medicare.


Conversely, the LVH Program affects hospitals in rural communities that may not serve a high volume of patients. These low-volume, prospective payment system hospitals receive enhanced Medicare adjustments if they are more than 15 road miles from another comparable hospital and have less than 1,600 Medicare discharges per year.

More Articles on Medicare and Rural Hospitals:

The Future of Rural Hospitals: Q&A With Desiree Einsweiler, Incoming CEO of Palo Alto County Health System

5 Primary Financial Metrics for Critical Access Hospitals

House Bill Would Boost Payments to Rural Hospitals

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