U.S. Senator Ken Salazar Member of the Agriculture, Energy and Veterans Affairs Committees 2300 15^th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510
For Immediate Release Novemeber 19, 2007		CONTACT:Stephanie Valencia – 202-228-3630 Cody Wertz 303-350-0032
Sen. Salazar Introduces Bill to Ensure that Sole Community Hospitals Receive Adequate Medicare Reimbursements WASHINGTON, DC – Last week, United States Ken Salazar introduced the Medicare Sole Community Hospital Preservation Act to ensure that hospitals that provide critical care in isolated areas are properly reimbursed by Medicare. The bill would make significant improvements to the Medicare reimbursement guidelines to ensure that these safety net providers who serve rural and urban communities can continue to offer services in areas of need. There are currently 15 sole community hospitals in Colorado and over 480 throughout the Nation. The bill is endorsed by the American Hospital Association and National Rural Health Association. “Sole Community Hospitals play a very important role in providing services and jobs to rural and isolated communities,” said Senator Salazar. “They are the often the only hospital serving their communities and surrounding areas. Because many of the hospitals serve a significant number of Medicare patients and experience higher costs because they operate in more isolated areas, this bill makes important fixes to ensure that they receive adequate Medicare reimbursement payments.” The legislation would do two key things: Permanently Restores the Hospital Outpatient PPS Hold-Harmless Protection. The Medicare Modernization Act (MMA) extended the hold-harmless protection under the outpatient prospective payment system (PPS) to all hospitals with SCH status that are located in rural areas, regardless of bed size. However, this protection expired December 31, 2005. Notably, while all SCHs would be eligible for hold harmless payments, only those with the greatest cost disparities would receive it, making it a targeted benefit that is re-evaluated each year. Senator Salazar’s bill would make this important payment protection permanent, and extend eligibility for hold harmless payment to all SCHs, including SCHs in urban areas which were inadvertently omitted under the original MMA provision. Adds a More Current Cost Year for Purposes of Determining the Target Amount for Inpatient Services. SCHs are paid for inpatient services based on the higher of a prospective payment rate or cost-based rate determined using a hospital-specific target amount. Under current law, target amounts can be determined using a hospital's 1982, 1987 or 1996 cost years. Even though these cost amounts are adjusted for inflation, a more current cost year that reflects a more current cost experience should also be available. This bill would permit hospitals to also use the 2002 cost year for purposes of determining the target amount. The Sole Community Hospitals in Colorado are North Colorado Medical Center (Greeley), Montrose Memorial Hospital (Montrose), San Luis Valley Regional Medical Center (Alamosa), Mercy Medical Center (Durango), St. Thomas More Hospital (Canon City), Southwest Memorial Hospital (Cortez) St. Mary’s Hospital and Medical Center (Grand Junction), Arkansas Valley Regional Medical Center (La Junta), Pioneers Hospital (Meeker), Keefe Memorial Hospital (Cheyenne), Colorado Plains Medical Center (Ft. Morgan), Yampa Valley Medical Center (Steamboat Springs), Valley View Hospital (Glenwood Springs), Sterling Regional Medical Center (Sterling), Vail Valley Medical Center (Vail). ###