The chair of the Senate Finance Committee on Monday released a bill that would increase federal financial support to hospitals in hopes of stemming the tide of labor and delivery unit closures in rural and underserved areas.
Nearly a quarter of rural hospitals stopped providing obstetric services between 2011 and 2021, according to Chartis, a health care consulting firm. Analysts blame the closures on low Medicaid reimbursement rates and declining birth rates in rural communities. The combination, they said, makes it financially challenging to keep labor and delivery units staffed.
In a call with reporters, Senate Finance Committee Chair Ron Wyden, D-Ore., said he was inspired to introduce the bill after hearing of the impending closure of a maternity ward in Baker City, Ore.
