Baker introduces bill to create more predictable payment plan for rural hospitals

Sen. Lisa Baker (R-20th District) introduced legislation Monday seeking to establish a program to support rural hospitals by creating a more predictable payment plan and improving rural hospitals’ ability to carry out health services.

Senate Bill 1237 would create the Rural Health Redesign Center (RHRC), which would create a fixed budget to standardize reimbursements, improve hospitals’ ability to develop and implement expanded community health services and build the capacity for them to pursue programs related to critical needs, such as behavioral health and substance abuse and cooperative EMS.

“In recent years, we have heard a great deal about the challenges facing many of our rural hospitals,” Baker, who chairs the Senate Health and Human Services Committee, said. “The DOH has developed a substantial initiative to address critical problems and change the operating climate from one of decline to opportunity. Today I introduced Senate Bill 1237, to establish the Rural Health Redesign Center to oversee the transformation.”

A $25 million grant from the Center for Medicare and Medicaid Innovation will initially support the RHRC. As a public-private partnership, it will also have the ability to raise funds from other sources.

“By putting a tourniquet on the financial bleeding, we can enable our rural hospitals to invest more in community health,” Baker said. “With not a lot of time left in this legislative session, I will move the bill quickly so there is a chance it can be sent to the governor and become law this year.”