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Senator Kane warns of rural hospital closures tied to HR 1 changes; witnesses debate causes
Summary
Senator Kane presented a map and told the committee that 12 Virginia hospitals and clinics have closed or announced closures she attributes to Medicaid changes in HR 1 and a CMS rule on state‑directed payments; witnesses and other senators discussed whether financing changes or preexisting financial fragility are the primary cause.
Senator Kane showed a chart she said documents 12 closures in Virginia—primary care clinics, school‑based clinics and hospital units—and warned the closures are concentrated in rural areas. "None of the closures... are in the urban crescent. They're all in rural Virginia," she said, arguing that payment and policy changes in HR 1 and a recent CMS regulation will compound rural providers' financial challenges.
Witnesses acknowledged rural hospitals faced pressures before the reconciliation changes but disputed whether HR 1 alone caused the closures. Brian Blaise and Mr. Schneider said some closures predated the bill and underscored low occupancy and long‑term trends; senators and witnesses discussed targeted federal investments, including a cited $10,000,000,000 annual 'rural health transformation fund,' as a potential mitigation strategy.
