House Insurance Committee hosts meeting in Harrisburg

The state House Insurance Committee recently held an informational meeting in Harrisburg on a bill that would ensure the viability of rural hospitals across the state, retain local jobs, and increase access to health care.

House Bill 2532 would establish the Rural Health Redesign Center, a public-private partnership, which would administer the PA Rural Health Program.

“This public-private partnership is an opportunity for these hospitals to get on some stable financial ground,” Tina Pickett (R-Bradford/Sullivan/Susquehanna), author of the bill and committee chairwoman, said. “These hospitals – which provide critical access to care for thousands of rural residents – and their employees are the economic engines of most communities, and it’s imperative to keep them operational.”

Approximately 67 hospitals in Pennsylvania are considered rural. Rural hospitals are paid in a fee-for-service manner, and many are suffering financially; 32 are at risk of closing and have operating margins below 0 percent.

The PA Rural Health Program would change this by transitioning rural hospitals to a payment model that would provide a stable and steady stream of revenue with each hospital receiving the same amount of revenue monthly.

The center also would help hospitals engage and work with community partners to improve local health care and would help identify solutions for technical challenges.