Press Releases

WASHINGTON, DC – Today Congressman Jason Smith (R-MO) introduced the Saving Rural Hospitals from Closure Act which authorizes the Secretary of Health and Human Services (HHS) to take certain measures, including forgiving all Medicare accelerated payments for rural hospitals that are experiencing severe financial hardship.

Today Congressman Jason Smith (R-MO) introduced the Saving Rural Hospitals from Closure Act which authorizes the Secretary of Health and Human Services (HHS) to take certain measures, including forgiving all Medicare accelerated payments for rural hospitals that are experiencing severe financial hardship. In April, Smith successfully lobbied the Trump Administration to allow rural hospitals that are owned or operated by counties or other localities to qualify for critical financial assistance programs.

In the months since, Smith continues to implore the White House and Congressional Leaders to explore all cost saving opportunities for rural hospitals. 

“Put simply, this bill will help to keep our rural hospitals open by allowing the Secretary of HHS to give hospitals the flexibility they need to remain financially viable,” said Congressman Smith. “Last year was the worst year since 2010 for hospital closures in rural communities. Yet, due to increased financial hardships inflicted by the coronavirus, this year could be even worse.”

“Any future federal responses to the coronavirus must include this legislation to ensure our rural hospitals do not emerge from this pandemic in a worse position than they were before it began,” Smith added.  

Specifically, the legislation authorizes HHS to forgive hospitals’ reimbursements on Medicare accelerated payments, extend the timeline for their repayment, or lower the interest rate of their payments if there is “the existence of a serious chance of closure, impending bankruptcy, large-scale layoffs, or any other situation the Secretary determines appropriate.” It also stipulates that HHS must make a decision within 30 days of receiving a request from a hospital experiencing hardship. 

The Missouri Hospital Association praised Congressman Smith for his work on this bill and continuing to fight for rural hospitals, writing to him:

“On behalf of the 140 members of the Missouri Hospital Association, I thank you for sponsoring new legislation with Rep. McKinley that would allow for forgiveness of repayment obligations of Medicare Accelerated Payments based on a showing of significant financial hardship.  We appreciate your leadership in recognizing the depth and duration of financial challenges facing many hospitals as a result of the COVID-19 pandemic.”

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