Reed Introduces Legislation To Help Rural Hospitals Cut “Red Tape”

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WASHINGTON – New York Congressman Tom Reed announced Friday legislation that would help rural hospitals cut “red tape.”

Reed, in a media release, says the ARC Act would provide a legislative fix to a 2015 Centers for Medicare and Medicaid Services decision that hurts rural hospitals.

“We care about ensuring the hardworking people throughout rural New York have access to hospitals,” said Reed. “By slashing bureaucratic red tape we can guarantee the hospitals in our backyard are able to continue their mission of delivering healthcare to people in their times of need.”



Reed said the 2015 decision created bureaucratic confusion and resulted in recoupment payments being sought by Medicare contractors from the local hospitals.

The congressman believes the new legislation would provide CMS with the authority to fix the bureaucratic confusion and help New York rural hospitals stay open.

As a result of the 2015 decision, 16 small rural hospitals in New York have faced or continue to face recoupments that could total $15 to $20 million, with a punitive interest rate of over 9 percent. The new legislation aims to provide CMS with the authority to go back and fix hospital payments.



Congressman Anthony Brindisi (NY-22) and Elise Stefanik (NY-21) co-introduced the legislation with Reed.

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