The SOLES Act amends the Social Security Act to increase payments to sole community hospitals in Alaska and Hawaii for outpatient services, ensuring they receive adequate compensation to cover costs.
Dan Sullivan
Senator
AK
The Save Our Lone Emergency Services (SOLES) Act amends the Social Security Act to increase payments to sole community hospitals in Alaska and Hawaii for outpatient services. This ensures that these hospitals receive adequate compensation, covering at least 94% of their reasonable costs. The adjustment aims to support essential healthcare services in remote areas without increasing patient copayments and the Secretary will issue regulations to implement this change within 6 months.
SOLES Act Boosts Payments to Remote Alaska and Hawaii Hospitals: Outpatient Services Get Financial Lifeline
The "Save our Lone Emergency Services Act," or SOLES Act, is stepping in to shore up payments for sole community hospitals in Alaska and Hawaii. These critical access points, often the only healthcare option in remote areas, will now receive a bigger chunk of their costs back for outpatient services.
Keeping the Doors Open
This bill tackles a payment gap. Right now, some of these hospitals get reimbursed less than what their outpatient services actually cost. The SOLES Act mandates that payments cover at least 94% of "reasonable costs." (SEC. 2) For example, if a rural clinic in Alaska provides an outpatient service that costs $1,000, they're guaranteed at least $940 back, even if the standard payment rate would have been lower.
Real-World Ripple Effects
Imagine a small fishing village in Alaska where the nearest hospital is hours away by boat or plane. If that hospital struggles financially, it might cut back on services, or worse, close down. This bill is designed to prevent that. By ensuring more stable funding, the SOLES Act helps keep these vital healthcare facilities operational. This means residents, from cannery workers to teachers, can continue to access essential outpatient care like check-ups, lab tests, and minor procedures without traveling vast distances.
No Extra Cost to Patients
Importantly, the bill states that this payment boost won't increase copayments for patients (SEC. 2). So, folks using these hospitals won't see their out-of-pocket expenses go up because of this change.
Fast-Track Implementation
The SOLES Act isn't just a promise; it's on a timeline. The Secretary has six months to issue regulations, and the new payment system kicks in for services provided on or after the following January 1 (SEC. 2). This means these hospitals, and the communities they serve, should see the benefits relatively quickly. While "reasonable costs" needs a clearer definition to avoid potential disputes, the overall aim is to keep these essential services running in places where healthcare options are already limited.