[Congressional Record Volume 146, Number 9 (Monday, February 7, 2000)]
[Senate]
[Pages S381-S382]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Mr. Helms):
  S. 2037. A bill to amend title XVIII of the Social Security Act to 
extend the option to use rebased target amounts to all sole community 
hospitals; to the Committee on Finance.


            sole community hospital fair payment act of 2000

 Ms. SNOWE. Mr. President, I rise today to introduce the Sole 
Community Hospital Fair Payment Act. This legislation will correct an 
unintended drafting error involving Medicare reimbursements for the 
Sole Community Hospital program, enacted last year as part of the 
Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act (P.L. 106-
113).
  Medicare designates Sole Community Hospitals based on factors such as 
isolated location, weather or travel conditions, or the absence of 
other hospitals within a 35 road-mile radius. These hospitals are 
considered the only source of inpatient services that are reasonably 
available in a geographic area. Sole Community Hospitals are reimbursed 
for services on either a federal national standardized amount or on a 
hospital-specific target amount that is based on either updated FY 1982 
or updated FY 1987 costs.
  Last year, Congress passed legislation updating the federal rate 
reimbursement level to costs based on Fiscal Year 1996. A drafting 
error in the bill, however, unintentionally updated the reimbursements 
for hospitals that are paid on a specific rate--leaving out 327 
hospitals across the country that Congress intended to help.

[[Page S382]]

  If this error had not been made America's rural hospitals would be 
expecting an additional $600 million over five years. Without 
correction, the error could cost four hospitals just in my state 
approximately $2.84 million annually that had been anticipated from 
this legislation. These hospitals--Mayo Regional Hospital in Dover-
Foxcroft, Down East Community Hospital in Machias, Northern Maine 
Medical Center in fort Kent, and Rumford Community Hospital in 
Rumford--are a vital part of their communities and had expected these 
additional funds.
  Small hospitals across the country are facing an increasingly 
uncertain future, and we cannot afford to lose any more of our rural 
health care providers. This funding is critical to these small 
hospitals and the communities they serve. These facilities and the 
patients they serve should not be penalized for a mistake made by 
Congress I urge my colleagues to join me in supporting this legislation 
and I urge the Senate to pass this technical correction bill 
immediately.

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