WASHINGTON – Today, U.S. Senators John Hickenlooper, along with 15 of his Senate colleagues, introduced the Rural Community Hospital Demonstration Reauthorization Act to extend the Rural Community Hospital Demonstration (RCHD) program for another five years.
“Rural hospitals are a lifeline and often the only source of care for miles,” said Hickenlooper. “Without additional financial support, many Colorado hospitals will continue facing serious challenges to keep their doors open, retain staff, and deliver care to those in need.”
The RCHD is a program, run by the Centers for Medicare and Medicaid Services (CMS), that helps rural hospitals stay financially viable by reimbursing hospitals based on the cost of inpatient services, rather than a set Medicare rate.
Currently, four Colorado hospitals participate in the RCHD: Delta Health, Valley View Medical Center, Montrose Regional Health, and San Luis Valley Health.
The RCHD is specifically designed to boost the viability of rural hospitals. Recent performance data found that new RCHD hospitals have stronger financial conditions and more reliable staff retention. RCHD has helped more than 50 rural hospitals keep their doors open for acute inpatient care close to home.
“The Rural Community Hospital Demonstration program provides a practical, proven approach to sustaining access to care by aligning Medicare payment with the real costs of providing services in rural communities. This program is about keeping care local, to ensure Colorado residents can receive timely, high-quality care, close to home,” said Jeff Tieman, Colorado Hospital Association’s President and Chief Executive Officer.
“This program is critical to sustaining access to high-quality care in rural communities like ours. It provides the stability and flexibility needed to navigate the unique financial and operational challenges we face, while continuing to invest in services that keep care close to home,” said Jeff Mengenhausen, Montrose Regional Health’s Chief Executive Officer
“As a rural health system serving the San Luis Valley, we are already seeing the benefits of participating in the Rural Community Hospital Demonstration Program,” said Konnie Martin, San Luis Valley Health’s Chief Executive Officer. “This program is helping us strengthen our financial footing and bring in the resources we need to preserve critical services for our community. As the only provider of Level III trauma and obstetric care within a 120-mile radius, our ability to remain open and fully operational is essential. The care we provide is not only vital to the health of our region, but also to its economic stability as the largest employer in the San Luis Valley.”
“Rural hospitals like Delta Health operate on incredibly thin margins while serving vulnerable patient populations across Delta County,” said Nick Colleran, Delta Health’s Interim Chief Executive Officer and Chief Operating Officer. “The Rural Community Hospital Demonstration Program has been a lifeline for our rural hospital, providing the stable, predictable reimbursement we need to keep our doors open and continue delivering essential services, such as oncology care, to our community. At a time when we are facing mounting financial challenges such as our 2025 Medicare loss on charges of $45,161,765.00, as well the loss of critical resources and increasing administrative burdens, this program offers real, immediate support – not theoretical funding.”
“Valley View has participated in the Rural Community Hospital Demonstration Program since 2017. The program has provided crucial support that allows Medicare patients to receive high quality care close to home. Continued participation in the program is essential to preserving critical services, maintaining staffing stability, and ensuring that rural Medicare beneficiaries can continue to receive high quality care in their own communities. Without this support, access to vital inpatient, specialty, and outreach services would be at risk for the residents who rely on us most,” said Brian Murphy, Valley View Hospital’s Chief Executive Officer.
“Many rural hospitals face financial uncertainty from low patient volumes, sicker patient populations, a challenging payer mix, geographic isolation, and shifts in care delivery. The Rural Community Hospital (RCH) Demonstration Extension Act allows hospitals to continue providing essential care in their communities by supporting the financial stability of participating rural hospitals. Hospitals with 50 beds or less are some of the most vulnerable to closure and the RCH demo offers an important model to maintain access in rural communities around the country.” said Lisa Kidder Hrobsky, American Hospital Association’s Senior Vice President for Advocacy and Political Affairs.
“This bill would provide a 5-year extension of the RCHD Program, which offers much-needed support for small rural hospitals through enhanced Medicare reimbursement. The RCHD Program has demonstrated improvement in Medicare inpatient margins for participating rural hospitals and has been crucial in helping rural hospital leaders maintain rural hospital viability,” said Alan Morgan, CEO, National Rural Health Association.
Hickenlooper is a champion for rural hospitals and health care. As governor, he signed a law to prevent more than a dozen rural hospitals in Colorado from closing.
In the Senate, he recently led the introduction of the bipartisan Rural Health Innovation Act to establish a grant program for rural health providers to increase staffing, critical technology, and equipment.
He also understands the value of health care stories in combatting reckless cuts by the Trump administration and MAGA Republicans. Hickenlooper recently met with rural health providers in Delta, Colorado to hear about increased costs and the financial challenges facing rural hospitals.
The text of the bill is available HERE.
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