Press Release

Rural Community Hospital Demonstration (RCHD) provides lifeline to rural communities WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.) , a member of the Senate Finance Subcommittee on Health Care joined U.S. Senators Chuck Grassley (R-Iowa) and Michael Bennet (D-Colo.) in introducing the Rural Community Hospital Demonstration Reauthorization Act , which would extend the Rural Community Hospital Demonstration (RCHD) for five years. RCHD provides a lifeline to rural hospitals by allowing them to test innovative hospital payment models under Medicare that boost financial sustainability to maintain and improve health care access in rural communities across the country. Vermont’s Brattleboro Memorial Hospital is one of the thirty hospitals across the country chosen for this demonstration program. “America’s rural hospitals are essential to ensuring that every community can access lifesaving care close to home. But rural hospitals in Vermont and across the country are operating on razor thin margins—workforce shortages and rising costs only scratch the surface of the challenges they face,” said Senator Welch . “We need to extend the Rural Community Hospital Demonstration program to ensure our hospitals can continue to provide vital care to rural patients in Vermont and across the country.” “The Rural Community Hospital Demonstration program gives rural hospitals a better shot at keeping their doors open to provide care for the community. With a proven track record of more than two decades, this program gives eligible hospitals financial stability to keep healthcare close to home for Iowans. While there’s more to be done, our Rural Community Hospital Demonstration Reauthorization Act is a key step to provide continued support for rural health care in America,” said Senator Grassley . “Rural hospitals are the lifeline of rural communities. They keep families healthy, support local economies, and make it possible for people to live and work in rural Colorado. At a time when many rural hospitals are already under significant financial strain, extending the Rural Community Hospital Demonstration program is critical to maintaining access to care. If Congress fails to extend this program, hospitals not only lose a vital source of funding, but rural Coloradans could face longer drives, delayed care, and fewer options close to home. I’ve heard directly from rural hospitals across Colorado about what’s at stake, and I’ll keep fighting to protect health care access for every Coloradan,” said Senator Bennet . The most recent performance data found participating RCHD hospitals significantly improved their Medicare margins and had higher capital investments, resulting in stronger financial conditions and helping with staff retention. Participating hospitals are mostly paid using a reasonable cost-based methodology instead of the inpatient prospective payment system. In addition to Senators Welch, Grassley, and Bennet, the legislation is cosponsored by Senate Finance Committee Chairman Mike Crapo (R-Idaho) and Ranking Member Ron Wyden (D-Ore.), as well as Sens. Dan Sullivan (R-Alaska), Ben Ray Luján (D-N.M.), Cindy Hyde-Smith (R-Miss.), Jerry Moran (R-Kan.), Angus King (I-Maine), Lisa Murkowski (R-Alaska), Jeff Merkley (D-Ore.), Pete Ricketts (R-Neb.), Martin Heinrich (D-N.M.), James Lankford (R-Okla.) and John Hickenlooper (D-Colo.). Senator Welch has led efforts to protect access to health care and support rural hospitals, providers, and patients in Vermont. The Senator led the introduction of the bipartisan Rural Hospital Technical Assistance Program Act to help rural hospitals that are at risk of being closed, and the bipartisan Fair Funding for Rural Hospitals Act to ensure that hospitals caring for large numbers of Medicaid and uninsured patients in rural states receive their fair share of federal funding. Senator Welch also introduced of the bipartisan Rural Hospital Support Act , legislation to prevent rural hospital closures by extending and modernizing critical Medicare programs. Senator Welch is a lead sponsor of the EMS ROCS Act , CARE Act , 340B PATIENTS Act , and the CONNECT for Health Act . Read and download the full text of the bill. ###