Rural hospitals across Kansas are in crisis. Lawmakers must take steps this session

Kansas has become ground zero for the nation’s rural hospital crisis. Just weeks ago, the state lost Herington Municipal Hospital, its 11th rural facility to close in the past two decades. More than 600 rural U.S. hospitals (over 30% of the nation’s total) are at risk of closing due to their financial instability.

In Kansas, 82% are experiencing losses on services they provide, and 27% are at immediate risk of closing.

The people of Kansas are suffering from these closures, often driving an hour or more just to get care.

This is unacceptable. No citizen, rich or poor, should have to drive an hour or more to get the life-saving medical attention they need in the richest, freest nation on earth. That goes against every moral and ideal this country was founded upon, and our state’s leaders must address it.

There are several steps the Kansas Legislature can take to mitigate this crisis. One of them is addressing the billing issues the state’s rural hospitals presently face with health plans.

It is more expensive to deliver health care in rural areas, as these facilities have fewer patients and higher cost outlays to incentivize staff to work there. Yet, all too frequently, health plans do not reimburse rural hospitals enough for them to recoup their expenses. They choose to pocket that money instead.

No issue affects rural hospital’s financial health more than this one, so policymakers would be well served to address it.

The Legislature must also ensure it does not inadvertently fuel new financial burdens on these hospitals through legislative fiat.

Several Kansas county health departments have raised concerns about bills that would do just this. One of them is SB 234, which would effectively mandate the state’s facilities begin using new patient referral technology even though there is nothing wrong or objectionable with their current ones.

The University of Kansas, Kansas Association of Local Health Departments and Kansas Association of School Boards all oppose this bill. If the Legislature wants to get serious about protecting the state’s rural hospitals, it should, too.

A budget estimate for a similar bill introduced in neighboring Nebraska estimated the cost for this transition would exceed $3 million, and that accounts for only the cost on state technology systems, not the additional costs the bill would impose on providers in the state coordinating care.

The financial pressure from SB 234 could be enough to bankrupt many of the 27% of Kansas’ rural hospitals at immediate risk of closing.

Last but certainly not least, the state must ensure that it continues supporting these rural hospitals through the Rural Hospital Innovation Grant it created through House Bill 2208 in 2021. This grant has given dozens of our hospitals the support and breathing room they need to continue serving this state’s most vulnerable, and it must remain in place.

While this problem will not prove easy to solve, Kansans can rest easy knowing that a vast coalition of Democrats and Republicans in the state legislature has signaled a commitment to address it.

Many said they will do whatever it takes, for however long it takes, to give their residents the health care support and accessibility they need. And for that, we should all be optimistic and grateful.

Reagan Simpson is a health care expert and public speaker in Kansas. His more than 20 years of public experience in the hospital and health care industry has included serving as the president and chief executive officer of several rehabilitation hospitals.

This article originally appeared on Topeka Capital-Journal: Rural hospitals across Kansas are in crisis. Lawmakers can help