Legislation targets financial stability for rural hospitals

NORWALK — State Reps. Jason Stephens, R-Kitts Hill, and Kellie Deeter, R-Norwalk, have introduced legislation they say is designed to strengthen hospitals in smaller counties by increasing certain Medicaid reimbursement rates. The proposal, known as the Healthier Rural Hospitals Act, would create a two-year program providing higher Medicaid managed care organization reimbursement payments to hospitals located in counties with populations under 100,000, according to a news release from the legislators. "Many rural Ohio residents struggle with their health. Unfortunately, so do the financials of the hospitals that serve them," Stephens said. "The Healthier Rural Hospitals Act levels the playing field to give hospitals and the residents who depend on them the resources they need to provide quality care." Deeter said hospitals often serve as critical infrastructure in rural communities. "Rural hospitals are more than healthcare facilities — they are lifelines for our communities. When a hospital struggles financially, families lose access to care, jobs are threatened, and entire regions feel the impact," Deeter said. "This legislation recognizes the unique challenges facing small, rural counties and helps ensure hospitals can keep their doors open and continue serving patients close to home. Strengthening rural healthcare means stronger communities across Ohio." Under the bill, reimbursement rate minimums would apply to counties that rank highest in several health and economic indicators, including: • Age-adjusted rate of cancer deaths • Percentage of population at or below 150% of the federal poverty level • Age-adjusted rate of chronic lower respiratory disease • Age-adjusted rate of death from stroke • Age-adjusted rate of unintentional drug overdose death Hospitals in counties ranked one through ten in these metrics would receive at least 150% of the statewide Medicaid managed care organization average reimbursement rate. Hospitals in counties ranked 11 through 20 would be guaranteed at least 125% of the statewide average. Currently, many providers in these areas are paid far below the managed care organization statewide average, according to the release. The legislation has been introduced as House Bill 675 and is awaiting committee assignment in the Ohio House. What it means for Huron County Deeter, whose 54th House District includes Norwalk, told the Reflector that the city's Fisher-Titus Medical Center could benefit from this law if it passes. "Huron County meets the criteria outlined in this legislation, which would make Fisher-Titus Medical Center eligible for enhanced reimbursement rates through Ohio Medicaid for the care they provide," Deeter said. "Strengthening the hospital's financial sustainability allows for greater investment in preventative and community-based care, which will lead to a healthier population and reduced long-term healthcare costs."