LINCOLN, Neb. (KLKN) – For many rural hospitals in Nebraska, the challenge isn’t just providing care; it’s staying open.
They said at a press conference Tuesday that they’re facing a financial crisis and struggling to meet the needs of their communities.
In rural Nebraska, a single hospital is often the only source of care for miles.
But they are facing a tough battle as they deal with a shortage of funds.
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They said large urban hospitals such as the University of Nebraska Medical Center receive higher reimbursement rates from insurance and government programs, while smaller rural hospitals are left to scramble for resources.
“We need to make sure that reimbursement models are fair, and they bring dollars to the table for the services that we do have,” said Arlan Johnson, CEO of Howard County Medical Center.
Sen. Brian Hardin said as health care costs rise, the financial gap only widens.
“In 2023, the average retail value of a Tier 4 drug in America was $257,000 for the year,” he said. “Who can afford that? Short answer, no one.”
He wants to make sure rural hospitals can participate in the 340B program, which allows them to purchase drugs at a discount.
“In order to give top-notch care and provide extra services in the community we have, we have to ensure that Medicaid and 340B programs are protected,” said Laura Gamble, CEO of Pender Community Hospital.
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Health officials said if rural hospitals don’t get higher reimbursement, some will have to close.
For families living in remote areas, those closures mean longer drives to receive basic care and, sometimes, delayed treatment.
State leaders are aware of the challenges and said it’s one of their top priorities this upcoming legislative session.
But the solutions are far from simple.
Sen. Mike Jacobsen of North Platte said this upcoming year, he plans to work with the Nebraska Medical Association to work on a bill that would allow higher reimbursement for doctors and other practitioners.
Hardin said Congress needs to step up and remodel 340B.
Tags: 340b program, Arlan Johnson, drug prices, Gering, hospitals, Howard County Medical Center, Laura Gamble, medical provider reimbursement rates, Memorial Hospital, North Platte, Pender Community Hospital, reimbursement, reimbursement rates, rural hospitals, Senator Brian Hardin, Senator Mike Jacobsen, Seward Memorial Hospital