The state Assembly has passed a bill designating rural hospitals “critical-access hospitals,” which will allow them to be paid by Medicaid “on the basis of reasonable costs,” says the bill’s author, Assemblywoman Addie Russell (D-Theresa).

“This measure is absolutely necessary in order for rural hospitals in the North Country to stay afloat,” Russell said. “Our friends and neighbors depend on these facilities for essential medical care and cannot afford to see them go under.”

Cost-based Medicaid reimbursement would help ensure the long-term financial sustainability of rural hospitals, said Russell. New York State Medicaid reimbursement rates are presently capped at a rate lower than the cost of operation. The problem is exacerbated for critical access hospitals by the need to spread substantial fixed costs over a smaller yet critical number of visits.

This legislation helps rural hospitals and ensures that families in isolated areas continue to have access to vital health care services. Having Medicaid payments that cover reasonable costs will help to further ensure the financial stability of rural hospitals, Russell said.

“This legislation is not simply a matter of saving jobs; it is a matter of saving lives,” Russell said. “This legislation ensures that families in rural communities have access to the quality, necessary medical services they deserve.”

To become law, the bill must now pass the Senate, where it is sponsored by Senator Catherine Young, and then be signed by the governor.