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End of rural hospital Medicare support could mean $1.7 million less for Ogdensburg, Gouverneur, Massena hospitals

Posted 2/4/15

Claxton-Hepburn, Gouverneur, Massena hospitals could miss out on more than $1 million in federal aid if a Medicare program deemed critically important to rural health care in New York is allowed to …

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End of rural hospital Medicare support could mean $1.7 million less for Ogdensburg, Gouverneur, Massena hospitals

Posted

Claxton-Hepburn, Gouverneur, Massena hospitals could miss out on more than $1 million in federal aid if a Medicare program deemed critically important to rural health care in New York is allowed to expire April 1.

Hospitals determined to be at risk in the absence of these programs, which is due to expire April, and the amounts they received for 2014-15, are Claxton-Hepburn Medical Center in Ogdensburg, $624,000; E.J. Noble Hospital of Gouverneur, $553,000; and Massena Memorial Hospital, $542,000, a total of $1.7 million.

U.S. Sen. Charles Schumer (D-NY) said last month he was introducing legislation to extend the key rural hospital support programs for hospitals that treat high number of Medicare patients and are critical to rural communities.

Now he and Sen. Charles Grassley (R-Iowa) have introduced a measure they are co-sponsoring to extend the program.

Hospitals count on this funding each year, but the rural hospital Medicare funding stream expires April 1 if nothing is done, a press release from his office said.

Schumer explained that these two programs, the Low Volume Hospital (LVH) and Medicare Dependent Hospital (MDH) Program, provided a total of 24 hospitals across New York State with a total of $16 million between 2014 and 2015. Schumer said that his bill would make these programs permanent for the first time. The bill would permanently extend these programs rather than let them be subject to whim of congress each year, and would help give hospitals certainty that “the critical lifeline will always be available. Without these programs, some hospitals face cuts of over $1 million,” the release said.

Schumer said rural hospitals deserve a permanent federal funding stream to continue providing quality health care. These funds enable these rural hospitals to serve tens of thousands of patients every year. Schumer said that, due to their location in rural areas, these hospitals serve a vital public need, and should be supported so that they can maintain a high level of care for residents.

Schumer explained that rural hospitals face many challenges to their bottom line due to serving a population that has a high percentage of Medicare beneficiaries, providing care to more isolated communities where it is harder to achieve economies of scale, and attending to a smaller volume of patients compared to urban and suburban hospitals. As a result, these rural hospitals are often financially strained, making it difficult to provide the same, high-quality care as other hospitals and medical centers.

The LVH and MDH Programs help make these hospitals viable, and Schumer said if these programs – and the funding they provide – were to expire, which is set to happen on April 1, it would be disastrous for rural hospitals across the state, potentially affecting availability of services, accessibility and jobs.

Schumer said that these hospitals play a major role in keeping quality of care high across New York State and are a critical source of jobs, therefore any cut to the program would be a disastrous blow. The hospitals that receive funding through these programs serve tens of thousands of people annually and some face cuts as high as $1 million to their bottom line.

“Strong rural hospitals are essential to quality care, and they are the lifeblood of rural communities,” said Schumer. “These hospitals serve a vital public need, employ several thousands of people, and they deserve our support in their continuous efforts to provide the highest level of care to residents. These two federal programs are a key lifeline for these hospitals, and it is time to extend them on a permanent basis. Rural hospitals need certainty that this critical funding stream will be available year after year, and this bill will do just that.”