Why rural hospitals aren't interested in new designation

The Rural Emergency Hospital designation is set to take effect in January, but many hospitals aren't interested in the program, Politico reported Oct. 27. 

CMS unveiled its proposed rural emergency hospital program in June, which aims to curb rural hospital closures by offering them a chance to shutter infrequently used inpatient beds and focus on providing outpatient and emergency department services. 

The rules surprised many hospital administrators who said the program wouldn't work for their facilities, according to the report. Rural hospitals sometimes find inpatient services to be a key to gaining community trust and revenue. Inpatient services were also pivotal in handling waves of COVID-19 patients.   

Lawmakers said the designation will work as intended by creating a new option for hospitals on the brink of closure, according to the report. A majority of rural hospitals, however, are left without a bigger fix to their challenges, such as staffing issues, increasing costs and unsustainable reimbursements.

The final rule is expected to be next week, according to the report. 

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