Appropriations committee approves roughly $2 million to reimburse rural health recruits

Pierre — The Joint Committee on Appropriations approved House Bill 1047 as amended on a 17-0 vote, moving roughly $2 million in general funds to reimburse health-care professionals who completed the state’s rural recruitment assistance programs.

The bill, presented by Emily Kiel, division director of health care access at the South Dakota Department of Health, would appropriate $1,600,000 to reimburse clinicians recruited under the Department’s rural recruitment assistance program and, as amended, an additional $402,500 to reimburse 56 eligible health-care professionals under the facility recruitment assistance program. "So with that, Mister Chair, I would respectfully, request your support for the appropriations of House Bill 1047," Kiel told the committee.

The programs reimburse clinicians in exchange for a three-year service commitment in participating rural communities. Darcy McGuigan, finance officer for the Department of Health, told the committee: "None of the participants are paid anything until the end of the 3 years. So if they do not complete the 3 years, they do not receive anything." Kiel said the two programs are popular and have strong retention rates: the facility recruitment assistance program has 60 slots filled each year and, since 2012, has enrolled 898 health-care professionals with 611 (68%) either completing the program or still serving in the recruiting community.

Multiple interest groups testified in favor of the bill. Dean Krogman of the South Dakota State Medical Association, Paul Knecht of the South Dakota Dental Association, Jacob Parsons of the South Dakota Association of Healthcare Organizations, Grace Beck of Sanford Health and Mark Dayock of the South Dakota Health Care Association all urged committee approval, citing the programs’ role in placing and retaining providers in rural hospitals, long-term care and private practices.

During committee questions, members pressed for program details including how payments are made and how the state splits incentive costs with communities. Kiel and McGuigan explained that the state’s share varies by community population (e.g., the state pays 75% for communities under 2,500, 50% for some mid-sized communities and 25% for communities between 5,000 and 10,000) and that reimbursement amounts are tied to tuition rates and vary year to year.

Disposition and vote: Representative Cassin moved that the committee give HB 1047 a "do pass" recommendation as amended (1047A); Representative May seconded. The roll call recorded 17 ayes, 0 nays. The committee chair announced, "And HB 1047 moves on down to the floor."