Colorado: Opportunity for Rural Hospitals to Join Federal Demonstration Program

The Centers for Medicare & Medicaid Services (CMS) is inviting applications from rural hospitals in Colorado to join the Rural Community Hospital Demonstration program.

This program offers cost-based reimbursement for inpatient services to Medicare beneficiaries, aiming to support small rural hospitals.

Eligible hospitals must be located in rural areas, have fewer than 51 acute care inpatient beds, provide 24-hour emergency care, and not qualify as critical access hospitals.

The program is open to hospitals in the 20 least densely populated states, including Colorado, and will run through June 30, 2028.

Applications must be submitted by March 1, 2025, and selected hospitals will participate from May 1, 2025, to June 30, 2028.

The demonstration aims to enhance the capability of rural hospitals to meet local healthcare needs by providing financial stability through cost-based reimbursement.

Currently, 20 hospitals are participating, and up to 10 additional hospitals will be selected for this round.
Rural Hospital Support Expands Across 19 Additional States

The Rural Community Hospital Demonstration program is extending its reach to include rural hospitals in 19 other states beyond Colorado, such as Alaska, Arizona, Arkansas, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Vermont, and Wyoming.

This initiative is part of a broader strategy to address healthcare challenges in rural areas across these states, ensuring that small hospitals can continue to provide essential services to their communities.

Hospitals in these states that meet the eligibility criteria can benefit from cost-based reimbursement for inpatient services, which is designed to enhance their financial stability and service capabilities.

The program is budget-neutral, meaning adjustments will be made to national payment rates to cover the costs, ensuring no additional financial burden on the healthcare system.

To view the original document on the Federal Register, click here.

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