Rural hospitals face funding cliff

2022-09-24 02:17:04 By : Mr. Jack Pan

Rural hospitals that weathered the pandemic are facing a funding cliff, in danger of losing some $600 million in Medicare funding at the end of this month unless Congress intervenes.

Why it matters: With COVID relief no longer available, some rural facilities in parts of the country with older, sicker populations are struggling to stay open and are cutting services.

Driving the news: The immediate focus is on a pair of Medicare payment programs set to expire on Sept. 30.

Go deeper: The hospitals funded by the programs are typically too big to be classified as "critical access hospitals" and qualify for more favorable Medicare payment policies. They're also too small to benefit from Medicare's prospective payment system, which pays fixed amounts for hospital services.

What we're hearing: Some rural facilities have cut services and grappled with negative margins even before confronting a funding cliff.

The intrigue: The pleas for relief come as the broader hospital industry presses Congress to delay a scheduled 4% Medicare payment cut due to take effect at the end of the year.

Our thought bubble: Renewing rural funding programs is the bare minimum ask for facilities hit harder by staffing shortages and supply chain problems.