Holton Community Hospital Welcomes Increased Medicaid Support for Kansas Rural Hospitals

HOLTON, Kan. — Holton Community Hospital is welcoming news that the Centers for Medicare & Medicaid Services has approved Kansas’ application to allow Critical Access Hospitals and Rural Emergency Hospitals to receive enhanced Medicaid support through the state’s provider assessment program.

According to an announcement from U.S. Senator Jerry Moran’s office, the approval is expected to provide more than $72 million annually to Kansas Critical Access Hospitals and Rural Emergency Hospitals. The approval allows more rural hospitals to participate in the state provider assessment program and receive increased Medicaid reimbursement for services provided.

For Holton Community Hospital, this approval represents more than a statewide policy decision. It is a direct investment in the long-term sustainability of local healthcare access for Jackson County and the surrounding region.

“Holton Community Hospital is grateful for the leadership and advocacy of Senator Jerry Moran and the many state and federal partners whose efforts helped secure approval from the Centers for Medicare & Medicaid Services of the Kansas rural hospital Medicaid reimbursement pre-print,” said Carrie Lutz, Chief Executive Officer of Holton Community Hospital. “This approval represents a significant investment in rural healthcare and will have a meaningful impact on our ability to serve patients throughout our region.”

As a Critical Access Hospital, Holton Community Hospital provides essential healthcare services close to home, including emergency care, family medicine, surgery, rehabilitation, cardiac services, diagnostic services, specialty care, and other hospital-based services. Like many rural hospitals, HCH continues to navigate workforce shortages, inflationary pressures, rising operational costs, and the growing cost of maintaining modern healthcare infrastructure.

“We appreciate the efforts of Senator Moran and everyone who helped get the pre-print approved by CMS,” Lutz said. “For our Critical Access Hospital, this increase in Medicaid reimbursement for services provided is expected to generate just over $1 million in additional annual revenue. These resources will allow us to continue investing in the latest technology, equipment, and critical infrastructure needed to deliver high-quality care close to home.”

The Kansas Hospital Association also noted the importance of the CMS approval for hospitals serving Medicaid patients across the state. In the announcement from Senator Moran’s office, KHA President and CEO Chad Austin said enhanced support for Critical Access Hospitals and Rural Emergency Hospitals is significant because base Medicaid payments often fall below the cost of providing care. The additional support is intended to help hospitals maintain operations and sustain essential services in rural communities.

For HCH, the additional reimbursement will support strategic investments in patient care, facility improvements, technology upgrades, and recruitment and retention efforts. These investments are essential to preserving access to care for patients who may otherwise face longer travel, higher transportation costs, physical limitations, or delays in receiving needed services.

“Strong rural hospitals are essential to strong rural communities,” Lutz added. “This approval demonstrates a commitment to preserving healthcare access in Kansas and provides important support that will benefit our patients, employees, and communities for years to come.”

According to Senator Moran’s office and reporting from KRSL Radio, the CMS approval builds on previous changes to Kansas’ provider assessment program and is part of broader federal efforts related to rural healthcare funding. The announcement also noted that Kansas hospitals are expected to benefit from additional Medicaid reimbursement support over the next decade.

Holton Community Hospital extends its sincere appreciation to Senator Moran, the Kansas Congressional delegation, state leaders, the Kansas Hospital Association, and all those who worked collaboratively to advance this important initiative.

Holton Community Hospital is a Critical Access Hospital located in Holton, Kansas, providing emergency care, family medicine, surgery, rehabilitation, cardiac services, and specialty care to patients throughout Jackson County and Northeast Kansas. The hospital’s mission is to provide professionalism, compassion, and excellence in healthcare for a healthier community.

Sources: U.S. Senator Jerry Moran’s Office; KRSL Radio News; Centers for Medicare & Medicaid Services.

What does the CMS approval of Medicaid Support mean for Holton Community Hospital?

The approval allows Kansas Critical Access Hospitals and Rural Emergency Hospitals to receive enhanced Medicaid reimbursement through the state’s provider assessment program. For Holton Community Hospital, this increase is expected to generate just over $1 million in additional annual revenue to support patient care, technology, equipment, infrastructure, and recruitment and retention efforts.

Stay up to date with all the news and events impacting healthcare in Jackson County, Kansas on our Newsroom page.

FAQs

What was approved by CMS?
The Centers for Medicare & Medicaid Services approved Kansas’ application to allow Critical Access Hospitals and Rural Emergency Hospitals to receive enhanced Medicaid payments through the state’s provider assessment program.

How will this affect rural hospitals in Kansas?
According to Senator Jerry Moran’s office, the approval is expected to provide more than $72 million annually for Kansas Critical Access Hospitals and Rural Emergency Hospitals.

What does this mean for Holton Community Hospital?
Holton Community Hospital expects the enhanced Medicaid reimbursement to generate just over $1 million in additional annual revenue. These resources will help support investments in technology, equipment, facility infrastructure, patient care, and workforce recruitment and retention.

Why is Medicaid reimbursement important for rural hospitals?
Rural hospitals often face workforce shortages, rising supply and labor costs, inflationary pressures, and the high cost of maintaining essential services. Enhanced reimbursement helps support the long-term sustainability of local healthcare access.

What is a Critical Access Hospital?
A Critical Access Hospital is a rural hospital designation designed to help preserve access to essential healthcare services in rural communities. Holton Community Hospital is a Critical Access Hospital serving Jackson County and Northeast Kansas.

How does this support patients in Jackson County?
The additional funding helps HCH continue investing in high-quality care close to home, reducing the need for patients to travel long distances for essential healthcare services.