Two House lawmakers have introduced a bill that would establish an "essential health system" designation that would create more opportunities for safety net hospitals to receive federal funding.
If enacted, the change could be used by lawmakers to "better target funding, health equity initiatives, and public health resources to support these nonprofit facilities that serve traditionally vulnerable, under-resourced communities," according to a Feb. 15 news release from Massachusetts Rep. Lori Trahan. She is sponsoring the bill along with California Rep. David Valadao.
Hospitals would qualify as essential health systems if they meet one of three criteria, according to the legislation:
1. The hospital meets the requirements of a Medicaid-deemed disproportionate share hospital.
2. The hospital has a Medicare disproportionate patient percentage of at least 35%.
3. The hospital has Medicare disproportionate share hospital uncompensated care payment factor of 0.0005 or more.
The designation would be for non-federal government and private nonprofit hospitals and more than 1,000 would qualify, according to the release.
The legislation was met with support from America's Essential Hospitals, which said in a Feb. 15 news release that the designation "would help bolster access to health care services for low-income and marginalized people — and by doing so, reduce disparities in care and drive more equitable care."