Bill could offer ‘pathway other than closure’ for Iowa’s rural hospitals

CEDAR RAPIDS, Iowa (KCRG) – A invoice making its approach by Iowa’s legislature goals to assist rural hospitals keep open, however not everybody within the area agrees on how helpful it will likely be.

“Since 2010, there’s been about 140 hospitals which have closed in america,” Chris Mitchell, president of the Iowa Hospital Affiliation, stated. “The overwhelming majority of these are in rural areas.

“A lot of the purpose that we’re having points within the rural areas is our inhabitants,” James Roetman, CEO of Pocahontas Neighborhood Hospital, stated.

A low inhabitants in rural areas means low demand and low ranges of profitability. In an effort to deal with these points, the federal Consolidated Appropriations Act of 2021 created a brand new class of hospital. Beginning firstly of this 12 months, services can apply to be a rural emergency hospital, or REH. A invoice at the moment transferring by Iowa’s legislature would let hospitals within the state choose into that REH program.

Roetman stated the invoice will not be the answer rural hospitals want.

“Senator Grassley, who proposed this unique laws in ‘17, got here and knocked on our door and stated, ‘Why isn’t all people celebrating that we acquired this REH handed?’ and our phrases to him have been, ‘Senator, we’re sorry. However this laws isn’t going to assist Iowa hospitals,’” stated Roetman.

If a hospital applies to be an REH, it might lose in-patient providers. Nevertheless, they might be paid extra by the federal government for his or her Medicare providers: “an enhanced reimbursement fee for eligible providers consisting of the outpatient potential fee system fee plus a 5% add-on and a hard and fast month-to-month fee.”

“Now, once they’re financially struggling for a myriad of causes, there’s a pathway aside from closure,” Mitchell stated.

In September 2022, the hospital in Keokuk closed, citing low demand.

“The primary hospital that closed in 22 years in Iowa would have the chance to reopen and reclassify as an REH. And that will be nice for the Keokuk neighborhood proper now,” Mitchell stated.

However Roetman stated his facility is not going to apply to be an REH.

“At this level, we’re not planning on turning into our REH as a result of it doesn’t—we lose providers. And it’s not higher financially for us to do it, we receives a commission much less,” Roetman stated.

“Now, does that imply we’ll by no means join it? I can’t say that, proper? As a result of 5 years in the past, Keokuk wouldn’t have signed up for it both, proper?” Roetman added.

However for proper now, he stated the mathematics doesn’t add up.

“You’ve gotten your monetary individual have a look at it. And in our state of affairs, we have been going to receives a commission $1.2 million much less to go from essential entry to REH and lose providers inside our neighborhood,” Roetman stated.

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