Kaine Introduces Bipartisan Legislation to Provide Rural Hospitals with Financial Stability and Security
WASHINGTON, D.C. – U.S. Senator Tim Kaine (D-VA), a member of the Senate Health, Education, Labor and Pensions (HELP) Committee, joined U.S. Senators Peter Welch (D-VT) and Chuck Grassley (R-IA) in introducing the bipartisan Rural Hospital Support Act, legislation to prevent rural hospital closures by extending and modernizing critical Medicare programs. The legislation would permanently extend the Medicare-Dependent Hospital (MDH) program to ensure eligible rural hospitals are reimbursed for their costs. The bill would also permanently extend the Low-Volume Hospital (LVH) program to level the playing field for rural hospitals whose operating costs often outpace their revenue.
According to the Virginia Hospital & Healthcare Association rural hospital report, in 2024, there were 28 rural hospitals providing care for Virginians across the Commonwealth—from Lee County to the Eastern Shore. These hospitals also serve as economic anchors for rural communities—employing over 9,000 Virginians and providing over $800 million in benefits.
“Across Virginia, rural hospitals are lifelines to Virginians and their families, especially our seniors who often depend on Medicare for critical health care coverage,” said Kaine. “I’m proud to have worked with colleagues on both sides of the aisle to introduce the Rural Hospital Support Act to ensure our rural hospitals have the funding and support necessary to continue providing vital care to all in need.”
The Rural Hospital Support Act does not change other rural hospital Medicare programs including critical access hospitals (CAH), rural referral centers (RRC), Rural Community Hospital Demonstration, or the new voluntary rural emergency hospitals (REH). Each of these rural programs offer unique flexibilities to ensure health care services are accessible in rural America. Additionally, the bill would also update the rebasing year for Sole Community Hospitals (SCH) and MDHs to allow hospitals to tie reimbursement estimates to more recent trends in costs.
In addition to Kaine, Welch, and Grassley, the bill is cosponsored by U.S. Senators Shelley Moore Capito (R-WV), Roger Wicker (R-MS), Jeanne Shaheen (D-NH), Jerry Moran (R-KS), Tina Smith (D-MN), Cindy Hyde-Smith (R-MS), John Fetterman (D-PA), John Boozman (R-AR), Mark Kelly (D-AZ), Roger Marshall (R-KS), and Gary Peters (D-MI).
The Rural Hospital Support Act is endorsed by the Alliance for Rural Hospital Access, American Hospital Association, Iowa Hospital Association, MercyOne, National Rural Health Association, and UnityPoint Health.
The full text of the bill is available here. A one-pager is available here.
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