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Healthcare leaders ask Legislature to SAVE rural hospitals, communities
By BRIDGET O'GARA
Arizona's hospital community is banding together to save what could soon become an endangered asset in our state: small rural hospitals.
Both urban and rural hospital leaders - through the Arizona Hospital and Healthcare Association (AzHHA) - are supporting state legislation to offset the losses incurred by hospitals with fewer than 100 beds when treating Arizona Health Care Cost Containment System (AHCCCS) patients.
AHCCCS administration currently pays these rural Arizona hospitals an average of 62 percent of their cost, according to a study commissioned by AHCCCS.
"Hospitals are the hub of healthcare in rural Arizona," says Jim Dickson, chief executive officer of 15-bed Copper Queen Community Hospital in Bisbee, Arizona. "Unfortunate-ly, they are also in danger of atrophy. Underpayment by AHCCCS for services rendered places immense pressure on small rural hospitals and puts our state's healthcare system in jeopardy."
Healthcare leaders, like Dickson, and rural Arizona legislators hope to address this underpayment by establishing the Stable, Accessible, Viable and Efficient (SAVE) Rural Hospitals Fund with a $6 million state appropriation. These funds could be used to generate an additional $12 million in federal matching dollars.
AHCCCS would be responsible for developing a methodology for distributing the funds to the financially strained facilities.
SAVE is being considered by both legislative chambers, via House Bill (HB) 2085, sponsored by Rep. Bill Konopnicki (R-Safford) and Senate Bill (SB) 1191, sponsored by Senators Marsha Arzberger (D-Willcox) and Jake Flake (R-Snowflake).
"This legislation will make a tremendous difference to Arizona's rural communities," notes Jeff Hamblen, chief executive officer of 25-bed Winslow Memorial Hospital. "It's important to remember that in rural areas, hospitals are among the largest employers. The closing of a rural hospital has the potential to de-stabilize an entire community."
SB 1191 recently won the unanimous approval of the Senate Health Committee and HB 2085 has passed the House Health Committee. Both bills must clear the Appropriations Committees in their respective chambers before the full House and Senate may vote on them.
Small rural hospitals frequently are rural residents' only access to local healthcare services.
In Bisbee, citizens were in danger of losing primary healthcare services when several private practice physicians left the area. Copper Queen Community Hospital stepped in, opening two primary care clinics that employ doctors and other healthcare staff. The clinic counts about 24,000 visits a year and performs approximately 168,000 diagnostic laboratory tests. The hospital also employs the area's only surgeon and pediatrician.
Chris Cronberg serves as chief executive officer of Northern Cochise Community Hospital in Willcox, overseeing a 24-bed acute-care hospital, a 24-bed long-term care facility and several physician clinics.
He calls rural hospitals the healthcare safety net for their communities, noting that Willcox-area residents turn to Northern Cochise for medical services, as well as programs that maintain health, such as diabetes education, cancer support groups and childbirth preparation.
"If the state continues to tear holes in the safety net via AHCCCS underpayment," says Cronberg, "one day a rural hospital is going to fall through the net. This would be bad for the health of people in that community and the area's economic viability."
Both urban and rural hospital leaders have weighed in on the significance of SAVE.
"Rural hospitals face great challenges," said Dan Coleman, president and chief executive officer of the Phoenix valley's John C. Lincoln Health Network. "Arizona needs to ensure these hospitals continued ability to serve the people of their communities. HB 2085 and SB 1191 provide a modest amount of money that will make a huge difference for small rural hospitals in Arizona."
(Editor's Note: Bridget O'Gara is the vice president of Communications Arizona Hospital and Healthcare Association.)
Both urban and rural hospital leaders - through the Arizona Hospital and Healthcare Association (AzHHA) - are supporting state legislation to offset the losses incurred by hospitals with fewer than 100 beds when treating Arizona Health Care Cost Containment System (AHCCCS) patients.
AHCCCS administration currently pays these rural Arizona hospitals an average of 62 percent of their cost, according to a study commissioned by AHCCCS.
"Hospitals are the hub of healthcare in rural Arizona," says Jim Dickson, chief executive officer of 15-bed Copper Queen Community Hospital in Bisbee, Arizona. "Unfortunate-ly, they are also in danger of atrophy. Underpayment by AHCCCS for services rendered places immense pressure on small rural hospitals and puts our state's healthcare system in jeopardy."
Healthcare leaders, like Dickson, and rural Arizona legislators hope to address this underpayment by establishing the Stable, Accessible, Viable and Efficient (SAVE) Rural Hospitals Fund with a $6 million state appropriation. These funds could be used to generate an additional $12 million in federal matching dollars.
AHCCCS would be responsible for developing a methodology for distributing the funds to the financially strained facilities.
SAVE is being considered by both legislative chambers, via House Bill (HB) 2085, sponsored by Rep. Bill Konopnicki (R-Safford) and Senate Bill (SB) 1191, sponsored by Senators Marsha Arzberger (D-Willcox) and Jake Flake (R-Snowflake).
"This legislation will make a tremendous difference to Arizona's rural communities," notes Jeff Hamblen, chief executive officer of 25-bed Winslow Memorial Hospital. "It's important to remember that in rural areas, hospitals are among the largest employers. The closing of a rural hospital has the potential to de-stabilize an entire community."
SB 1191 recently won the unanimous approval of the Senate Health Committee and HB 2085 has passed the House Health Committee. Both bills must clear the Appropriations Committees in their respective chambers before the full House and Senate may vote on them.
Small rural hospitals frequently are rural residents' only access to local healthcare services.
In Bisbee, citizens were in danger of losing primary healthcare services when several private practice physicians left the area. Copper Queen Community Hospital stepped in, opening two primary care clinics that employ doctors and other healthcare staff. The clinic counts about 24,000 visits a year and performs approximately 168,000 diagnostic laboratory tests. The hospital also employs the area's only surgeon and pediatrician.
Chris Cronberg serves as chief executive officer of Northern Cochise Community Hospital in Willcox, overseeing a 24-bed acute-care hospital, a 24-bed long-term care facility and several physician clinics.
He calls rural hospitals the healthcare safety net for their communities, noting that Willcox-area residents turn to Northern Cochise for medical services, as well as programs that maintain health, such as diabetes education, cancer support groups and childbirth preparation.
"If the state continues to tear holes in the safety net via AHCCCS underpayment," says Cronberg, "one day a rural hospital is going to fall through the net. This would be bad for the health of people in that community and the area's economic viability."
Both urban and rural hospital leaders have weighed in on the significance of SAVE.
"Rural hospitals face great challenges," said Dan Coleman, president and chief executive officer of the Phoenix valley's John C. Lincoln Health Network. "Arizona needs to ensure these hospitals continued ability to serve the people of their communities. HB 2085 and SB 1191 provide a modest amount of money that will make a huge difference for small rural hospitals in Arizona."
(Editor's Note: Bridget O'Gara is the vice president of Communications Arizona Hospital and Healthcare Association.)
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