she sponsored that would allow rural hospitals designated as Critical Access Hospitals to receive
cost-based reimbursements from Medicaid for outpatient services.
“Rural hospitals in the North Country and across New York State serve as lifelines to the
communities where they are located, and increasingly operate as outpatient clinics as well,”
Russell said. “We must do everything we can to keep their doors open and help them remain
financially viable.”
The Critical Access Hospital Program (CAH) was created by Congress in 1997 to improve
rural health care access for Medicare recipients. Medicare reimburses these hospitals on
a “reasonable cost basis;” the same rules, however, do not apply for Medicaid patients. For
many Critical Access Hospitals, current Medicaid reimbursement rates do not reflect the actual
cost of providing care, causing them to endure financial burdens. Allowing these hospitals to
receive cost-based reimbursements will help ensure they remain open to the public.
There are currently 13 hospitals in New York State that are designated as Critical Access
Hospitals, including three in the North Country. Critical Access Hospitals – like River Hospital
in Alexandria Bay – provide services that are essential to their community, including outpatient
services. Because they provide care in a rural area they have more challenges, but they also play
a critical role in preventative care that can save health care dollars in the long run.
“When it comes to these hospitals, it’s about access to quality and affordable health care.
Paying these hospitals on a ‘reasonable cost basis’ will go a long way to ensuring there is access
to health care, enable these facilities to maintain their quality of care and not push additional
costs onto other patients to balance their budgets,” Russell said. “Many of us in the North
Country depend on hospitals and their health care clinics for basic health care and to manage
their health problems without having to travel long distances. If any of these hospitals were to
close it would have a devastating impact on our region.”
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