Feenstra Introduces Legislation to Extend Rural Hospital Program

WASHINGTON, D.C. – Today, U.S. Rep. Randy Feenstra (R-Hull) introduced the Rural Community Hospital Demonstration Program Reauthorization Act to extend the Rural Community Hospital Demonstration (RCHD) for five years.

The RCHD provides critical support to rural hospitals across the country by allowing them to test innovative hospital payment models under Medicare that boost financial stability to maintain and improve healthcare access in rural communities, keep families healthy, and support local economies.

“By reauthorizing the Rural Community Hospital Program Demonstration, we are ensuring rural hospitals have the support they need to keep their doors open and continue providing the essential services that keep Iowa’s economy strong, families healthy, and communities thriving,” said Rep. Feenstra. “With a proven track record, this program provides rural hospitals with the financial stability needed to sustain health care services in our communities and ensure patients continue to have access to quality care close to home. I am honored to help lead this legislation in the House and strengthen support for Iowa’s rural hospitals.”

This legislation is co-introduced by Rep. Jared Golden (ME-02), Rep. Mike Flood (NE-01), and Rep. Janelle Bynum (OR-05).

“Without rural hospitals, many of my constituents would have to travel long distances, sometimes hours away, to get the care they need,” said Rep. Golden. “These hospitals are essential, but face unique challenges associated with rural places. Extending this program for another five years will provide them the stability they need to focus on what matters most: caring for their patients.”

“Rural community hospitals are critical lifelines for families across the country,” said Rep.Flood. “The RCHD program is a much-needed tool with an outstanding track record of helping rural community hospitals deliver high-quality care to patients. This program is vital to many Nebraskans, and I am pleased to join Congressman Feenstra in extending this impactful program for another five years as a co-lead.”

“In rural areas, hospitals are the backbone of the community,” said Rep. Bynum. “They ensure people have access to lifesaving care, expand job opportunities, and keep our local economies moving. We must extend the Rural Community Hospital Demonstration program to make sure Oregonians and Americans everywhere have access to quality healthcare close to home.”

This legislation was introduced by Senator Grassley (R-IA) and passed the U.S. Senate.

“The Rural Community Hospital Demonstration program gives rural hospitals a better shot at keeping their doors open to provide care for the community," said Sen. Grassley. "With a proven track record of more than two decades, this program gives eligible hospitals financial stability to keep healthcare close to home for Iowans. While there’s more to be done, our Rural Community Hospital Demonstration Reauthorization Act is a key step to provide continued support for rural health care in America."

This legislation is supported by various organizations across rural communities.

“The Rural Community Hospital Demonstration (RCHD) program has been vital to the long-term sustainability of Lakes Regional Healthcare in Spirit Lake, Iowa,” said Jason Harrington, Lakes Regional Healthcare President and CEO. “Participation in RCHD has allowed us to strengthen our financial footing, reinvest in our facilities, attract and retain essential staff, and continue delivering high-quality care close to home. Beyond health care, the hospital serves as a critical economic anchor for our community. Reauthorizing the RCHD is key to ensuring hospitals like ours can continue meeting the growing needs of our Medicare population and the communities we serve.”

“As MercyOne and the broader health care industry navigate ongoing challenges, we are grateful to Iowa's federal lawmakers for championing solutions that help sustain access to care for our most vulnerable communities,” said Dr. Kurt Andersen, Central Iowa Division of MercyOne President. “We look forward to continuing our work with Congress to advance policies that strengthen and protect access to high-quality care for all.”

“The Rural Community Hospital Demonstration has been an important lifeline for participating Iowa hospitals, helping stabilize finances while ensuring patients can continue to access care close to home,” said Chris Mitchell, Iowa Hospital Association President and CEO. “For many communities, there simply isn’t another option nearby. The program’s structure provides the kind of predictability hospitals need to plan, invest, and keep serving Medicare patients. Extending it for another five years builds on what’s already working—supporting rural patients, strengthening local hospitals, and delivering value for the Medicare program.”

“Many rural hospitals face financial uncertainty from low patient volumes, sicker patient populations, a challenging payer mix, geographic isolation, and shifts in care delivery,” said Lisa Kidder Hrobsky, American Hospital Association’s Senior Vice President for Advocacy and Political Affairs. “The Rural Community Hospital (RCH) Demonstration Reauthorization Act allows hospitals to continue providing essential care in their communities by supporting the financial stability of participating rural hospitals. Hospitals with 50 beds or less are some of the most vulnerable to closure and the RCH demo offers an important model to maintain access in rural communities around the country. The AHA thanks Rep. Feenstra and Rep. Golden for their strong leadership to support America's rural hospitals.”

“The National Rural Health Association (NRHA) is grateful to see the introduction of the Rural Community Hospital Demonstration (RCHD) Program Reauthorization Act, led by Representative Feenstra and Representative Golden,” said Alan Morgan, CEO, NRHA. “This bill would provide a 5-year extension of the RCHD Program, which offers much-needed support for small rural hospitals through enhanced Medicare reimbursement. The RCHD Program has demonstrated improvement in Medicare inpatient margins for participating rural hospitals and has been crucial in helping rural hospital leaders maintain rural hospital viability.”

Full text of the resolution is available HERE.

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