DeFazio, Wyden and Smith want HCFA to change Cottage Grove's census tract status to make hospitals located in Cottage Grove eligible for higher Medicare reimbursements under the Critical Access Hospital Program.
Current law requires such communities to be located in officially designated rural counties.
Because Lane County is designated as an urban county, hospitals in Cottage Grove are unable to receive financial assistance under the Critical Access Hospital Program. PeaceHealth has indicated it may reopen Cottage Grove Hospital if it can qualify for federal assistance under this program. Rural hospitals in Oregon and other areas of the country are struggling to keep their doors open. The federal designation that provides much-needed funding should be changed so that it is flexible enough to include rural areas like Cottage Grove that have a critical need for health care services. Rural health care providers face unique challenges because they are disproportionately dependant on federal financial assistance, like Medicare.