S. 474: Fair Funding for Rural Hospitals Act

This bill, titled the Fair Funding for Rural Hospitals Act, proposes changes to financial support for hospitals that treat a large number of Medicaid patients, known as Disproportionate Share Hospitals (DSH). Below is an overview of its main components:

Purpose of the Bill

The primary goal of the bill is to ensure that states receive a minimum level of funding for their DSH programs. This is particularly relevant for rural hospitals, which often rely heavily on these funds to provide care to low-income patients.

Funding Provisions

• Minimum DSH Allotment: The bill establishes a minimum DSH allotment for each state that will not drop below a certain amount. Specifically:
  • For the fiscal years 2025 through 2029, the minimum allotment is set at $20 million per state.
  • From fiscal year 2030 onward, the minimum allotment will be equal to the amount for the previous fiscal year, adjusted for inflation.
• Protection Against Reductions: The bill ensures that this minimum allotment amount remains in place even if other provisions would typically reduce the state's allotment based on a formula.

Implications for States

The bill would require every state to receive a minimum amount of funding from the federal government for Medicaid DSH payments. This is specifically designed to support hospitals that serve a high percentage of Medicaid patients, which can be crucial for their financial stability, particularly in rural areas.

Timeline

The minimum allotment changes will take effect starting in fiscal year 2025 and will apply to subsequent years as outlined in the funding provisions.

Overall Impact

The bill aims to provide more reliable funding for rural hospitals, helping them to sustain operations and continue to serve their communities, especially in regions where healthcare resources may be limited.

Relevant Companies

• None found