U.S. Senators Mike Rounds and Peter Welch have introduced legislation aimed at preventing the closure of rural hospitals in the United States. The Rural Hospital Technical Assistance Program Act seeks to formalize an existing pilot program managed by the U.S. Department of Agriculture (USDA), which provides technical assistance to rural hospitals to enhance their financial and operational standing.
Rounds highlighted the importance of rural hospitals as essential components of their communities, noting, “Providing technical assistance to rural hospitals at risk for closure gives providers and administrators a fresh set of eyes on their operations and allows for new ideas to help stabilize their operations. The Rural Hospital Technical Assistance Program Act would codify this pilot program and help rural hospitals continue to provide the critical care that South Dakotans need.”
Welch, co-sponsoring the bill, emphasized the broader impact on healthcare: “The health and wellbeing of Vermont’s rural hospitals impact the health and wellbeing of every Vermonter—but our rural hospitals need help to keep their doors open for our patients…this bipartisan bill…will strengthen hospitals across the United States and help rural hospitals improve their care and services.”
The USDA pilot program, supported by the National Rural Health Association, offers various forms of technical assistance, such as optimizing billing, addressing reimbursement delays, and maximizing potential revenue streams. The program prioritizes hospitals located in communities experiencing persistent poverty and populations below 20,000.
Seventeen hospitals, including four in South Dakota—Bennett County Hospital, Freeman Regional Health Services, Landmann-Jungman Memorial Hospital, and Pioneer Memorial Hospital—have benefited from the program. Tim Rave, President and CEO of the South Dakota Association of Healthcare Organizations, supported the legislation, stressing the importance of access to quality healthcare for South Dakota’s rural communities.
The impact of the program was noted by Melissa Gale, CEO of Landmann-Jungman Memorial Hospital Avera, who stated, “This approach truly reflects a deep understanding of our needs and challenges.” Alan Morgan of the National Rural Health Association praised the legislation, declaring its potential to prevent hospital closures and enhance rural healthcare services.
Since 2005, the U.S. has witnessed the closure of 186 rural hospitals, with over 400 more at risk. In South Dakota alone, 28 percent of hospitals face closure threats. Increasing infrastructure needs, such as facility upgrades and implementing electronic health records, are among the challenges faced by these hospitals.
