Senate Democrats introduce bill to try and stop closures of rural birthing centers

By on Tuesday, June 18th, 2024 in More Top Stories Northeastern Oregon News

EASTERN OREGON — (Information from U.S. Congress) A group of Senate Democrats unveiled draft legislation aimed at addressing the growing issue of rural hospitals and hospitals in underserved areas shutting down their labor and delivery units, impacting expectant parents, families, and local communities.

According to a press release, From 2012 to 2022, approximately one quarter of rural hospitals ceased offering obstetrics services, affecting 267 communities. This closure trend stems from various challenges such as high operational costs, low birth volumes, and difficulties in recruiting and retaining OB-trained staff, exacerbated by inadequate reimbursement for labor and delivery services.

Last year, St. Alphonsus Hospital in Baker City abruptly announced it would be ceasing maternity and birthing services, despite efforts to keep it open. 

The proposal, named the Keep Obstetrics Local Act (KOLA), proposes several measures including increasing Medicaid payments for labor and delivery services at eligible rural and high-need urban hospitals, providing standby payments to cover staffing costs at low-volume obstetrics units, implementing payment adjustments for hospitals with low birth volumes, and mandating states to offer 12 months of postpartum Medicaid coverage for women, among other provisions. The legislation ensures that hospitals use these additional funds to invest in maternal health care needs within their communities.

The proposal has garnered support from various healthcare organizations including the American College of Nurse-Midwives, America’s Essential Hospitals, Catholic Hospital Association, Community Catalyst, Families USA, Hospital Association of Oregon, National Partnership for Women & Families, National Rural Health Association, and the Oregon Perinatal Collaborative.

“In rural areas nationwide, accessing pregnancy care can be extremely challenging, and many rural providers are struggling,” said the Hospital Association of Oregon. “Rural hospitals deliver a significant portion of babies in Oregon, but to provide this care locally, they must tackle workforce shortages, low birth rates, and insufficient Medicaid reimbursements for maternity care. We commend the efforts of the Senators for addressing these issues through the Keeping Obstetrics Local Act, which offers practical solutions.”

“The proposal recognizes the need for emergency staffing options for rural providers to fill obstetrics positions temporarily, emphasizes Medicaid coverage for midwives and doulas, and addresses the complex Medicaid enrollment process for out-of-state obstetrics providers,” the association continued. “It acknowledges the ongoing costs associated with staffing obstetrics units around the clock and the financial strain on rural providers who heavily rely on government payers, particularly Medicaid for maternity services.”

“This bill represents a crucial step in safeguarding access to maternity care in rural Oregon and nationwide,” said Daniel Grigg, CEO of Wallowa Memorial Hospital. “This legislation will support rural families and communities by enhancing reimbursement for labor and delivery services and providing financial assistance to hospitals with low birth rates. 

A summary and section by section of the draft legislation is here. Legislative text is here.