Grassley, Welch Work to Provide Rural Hospitals with Financial Stability and Security

WASHIGNTON– Sen. Chuck Grassley (R-Iowa), a senior member and former chairman of the Senate Finance Committee, and Sen. Peter Welch (D-Vt.) introduced the bipartisanRural Hospital Support Actto prevent rural hospital closures by extending and modernizing critical Medicare programs.
“As a lifelong resident of rural Iowa, I know the importance of having access to health care services close to home. In addition to providing life-saving care, rural hospitals are a source of economic security for many rural communities,”Grassley said. “Our bipartisan bill will ensure the continuity of these vital programs and help keep rural hospitals’ doors open.”
“Rural hospitals provide essential care to patients in rural communities, including to folks who rely on Medicare and Medicaid. In Vermont, rural hospitals are also job creators and economic drivers. But across the country, rural hospitals are struggling to stay open, and they need a lifeline,”Welch said. “Our bipartisan legislation will help ensure rural hospitals are reimbursed for resources they need to continue delivering vital care in our rural communities.”
Specifically, theRural Hospital Support Actwould:
Cosponsors of the bill include Sens. Shelley Moore Capito (R-W.Va.), Tim Kaine (D-Va.), Roger Wicker (R-Miss.), Jeanne Shaheen (D-N.H.), Jerry Moran (R-Kan.), Tina Smith (D-Minn.), Cindy Hyde-Smith (R-Miss.), John Fetterman (D-Pa.), John Boozman (R-Ark.), Mark Kelly (D-Ariz.), Roger Marshall (R-Kan.) and Gary Peters (D-Mich.).
TheRural Hospital Support Acthasgarnered supportfrom Iowa and national stakeholders, including the Iowa Hospital Association, MercyOne, UnityPoint Health, the Alliance for Rural Hospital Access, the American Hospital Association and the National Rural Health Association.
Download audio of Grassley discussing the billHERE.
Find bill textHEREand a summaryHERE.
Background:
Rural hospitalsprovide critical carefor patients, many of whom rely on Medicare and Medicaid. These hospitals also serve as economic anchors – accounting for around14 percentof total employment in rural areas.
The MDH and LVH programs have supported rural communities for decades. The programs were last extended as part of the Continuing Resolution on December 20, 2024, and would expire on March 31, 2025, without congressional action. TheRural Hospital Support Actdoes not change other rural hospital Medicare programs including critical access hospitals (CAH), rural referral centers (RRC), Rural Community Hospital Demonstration or the new voluntary rural emergency hospitals (REH). Each of these rural programs offer unique flexibilities to ensure health care services are accessible in rural America.
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