Assemblywoman Addie J. Russell (D-Theresa) announced the
Assembly’s passage of a bill she authored to allow rural hospitals designated
as “critical-access hospitals” to be paid by Medicaid in the same manner that Medicare
pays such hospitals, which is on the basis of reasonable costs (A.10094-B).
“This measure is absolutely necessary in order for
rural hospitals in the North Country to stay afloat,” Assemblywoman
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. 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 our rural hospitals, Russell noted.
“This legislation is not simply a matter of
saving jobs; it is a matter of saving lives,” Assemblywoman Russell said. “This
legislation ensures that families in rural communities have access to the quality,
necessary medical services they deserve.”
The bill must now pass the Senate, where it is
sponsored by Senator Catherine Young, and then be signed by the Governor to
become law.
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