Greetings—


As Congress debates setting up a relief fund for rural hospitals to defray revenue losses from the reconciliation bill,
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new analysis from Urban Institute researchers finds that rural hospital revenue could drop by $87 billion over the next decade due to provisions in the reconciliation bill and expiring enhanced premium tax credits (PTCs) in the health insurance marketplaces. Uncompensated care could also increase by $23 billion over the next decade.


Looking at national estimates on changes in provider revenue and uncompensated care demand in rural and urban areas under both the reconciliation bill and expiring enhanced PTCs,
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the researchers find that for rural areas:
- Between 2025 and 2034, rural hospitals would face $66 billion in lost revenue due to the reconciliation bill and $22 billion in lost revenue due to expiration of the enhanced PTCs.
- More than 25 percent of the projected increase in hospital uncompensated care from the reconciliation bill would occur in rural areas, amounting to an estimated $23 billion. This includes $17 billion in additional uncompensated care due to the bill and $6 billion in additional uncompensated care due to expiration of the enhanced PTCs.
- The latest negotiations put the rural hospital relief fund at $25 billion over five years but to fully cover the likely financial losses, a relief fund closer to $100 billion would be needed for rural hospitals. Read the
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blog post to learn more. If you have questions for the research team, please reply to this email. We’re happy to connect you.


Thanks,


- The Stakeholder Outreach team

U R B A N I N S T I T U T E

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www.urban.org




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