Press Releases
April 8, 2003
Conrad Introduces "H-CARE" Rural Health Bill
Bill eases rural-vs-urban Medicare disparities
Washington, D.C. - Senator Kent Conrad and Senator Craig Thomas (R-WY) today introduced legislation they wrote to help rural health care providers cope with rising health care costs and the difficulties of providing service in sparsely populated areas of the country. The bill, which would bring an average increase of $1,000 per patient to rural hospitals, has 26 bipartisan Senate cosponsors.
"As health care costs have risen, Medicare payments to rural hospitals have not kept pace. The gap between rural and urban facilities has widened to the point where rural facilities can barely keep their doors open," Conrad said. "Our bill eases the disparities, restores fairness, and will help stabilize hospitals that are often the only source of health care for millions of rural Americans."
Conrad said the bill addresses problems in three key areas: direct Medicare payments for patient care; competition between rural and urban hospitals for medical personnel; and the need to purchase state-of-the art medical equipment and technology. North Dakota Congressman Earl Pomeroy is the chief sponsor in the House.
"An MRI machine costs the same in North Dakota as it does in New York. Small hospitals are competing for the same pool of physicians, nurses, anesthesiologists, and other medical professionals in a highly mobile society," Conrad said. "There are some differences in costs across the country, but Medicare doesn't reflect reality. There is no reason that Mercy Hospital in Devils Lake, North Dakota should get just half the reimbursement Our Lady of Mercy in New York City receives for treating a heart attack patient. Same patient, same problems, same treatment – half the reimbursement. It's not right."
The legislation increases payments to rural hospitals through a number of provisions. It equalizes the "standard payment" on which all Medicare hospital payments are based; assists so-called "DSH" hospitals that serve a disproportionate share of uninsured and low-income patients, and helps the very smallest hospitals, those that see less than 2,000 patients a year.
"Our bill takes nothing away from urban hospitals, which have their own set of problems to deal with. Our bill simply addresses the unfairness and inequities that have crept into the Medicare system over time to disadvantage rural health care providers," Conrad said.
The bill adjusts the labor wage index to recognize labor costs, and assist hospitals that must compete with urban markets for health care personnel. It assists rural providers by establishing grants to help hospitals renovate crumbling buildings and purchase state-of-the-art medical equipment and technology.
