Vicksburg Post
Senate legislation aims to bolster rural hospitals through Medicare payments
Measure would renew federal demonstration program supporting six participating Mississippi hospitals through alternative Medicare payment models.
Staff Reports
Mississippi’s rural hospitals could continue receiving enhanced Medicare support under bipartisan legislation aimed at extending a federal demonstration program for another five years.
The Rural Community Hospital Demonstration Reauthorization Act, S.4460, would renew the Rural Community Hospital Demonstration program, which allows participating rural hospitals to test alternative Medicare payment models designed to improve financial stability and preserve access to care in underserved communities.
“A five-year reauthorization of the RCHD program is just commonsense. The program has proven to be a cost-effective way for small rural hospitals to remain viable through enhanced Medicare reimbursements,” U.S. Sen. Cindy Hyde-Smith said. “I’ve fought to get Mississippi hospitals enrolled in this program and will continue to find ways to maintain access to rural health care.”
The legislation was introduced by U.S. Sen. Chuck Grassley and referred to the Senate Finance Committee.
“The Rural Community Hospital Demonstration program gives rural hospitals a better shot at keeping their doors open to provide care for the community,” Grassley said. “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.”
Six Mississippi hospitals currently participate in the program, including Greenwood Leflore Hospital, Magee General Hospital and Wayne General Hospital, which joined in April 2025 after the Centers for Medicare & Medicaid Services expanded enrollment in late 2024.
The hospitals joined existing Mississippi participants Anderson Regional Medical Center in Meridian, Highland Community Hospital in Picayune and Marion General Hospital in Columbia.
According to Hyde-Smith’s office, recent performance data showed new RCHD hospitals improved Medicare margins and increased capital investments, helping strengthen finances and retain staff. Participating hospitals are generally reimbursed through a reasonable cost-based methodology instead of the standard inpatient prospective payment system.
CMS has filled all 30 available slots in the national demonstration program.
Hyde-Smith previously worked with Grassley to urge CMS under the Biden administration to expand participation in the program as authorized by Congress.
The legislation has bipartisan support, including backing from Senate Finance Committee Chairman Mike Crapo and ranking member Ron Wyden, along with senators from both parties.
The proposal is one of several recent bipartisan rural health care measures supported by Hyde-Smith.
The Rural Health Innovation Act, S.4204, seeks to address workforce shortages and emergency care access by increasing support for Federally Qualified Health Centers and Rural Health Clinics, including roughly 240 facilities in Mississippi.
Another measure, the Save Struggling Hospitals Act, S.4233, would permanently codify Medicare low-wage index policies intended to increase reimbursement rates for hospitals in rural and lower-wage areas.