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S. Rept. 114-102 1 (2015-07-30)

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                                                       Calendar No. 181
                  114TH CONGRESS                                    REPORT
                     1st Session             SENATE                 114-102





                     THE  RURAL   COMMUNITY HOSPITAL DEMONSTRATION
                                    EXTENSION ACT OF 2015


                                    JULY 30, 2015.-Ordered to be printed


                             Mr. HATCH, from the Committee on Finance,
                                      submitted the following


                                         REPORT

                                         [To accompany S. 607]
                    The  Committee on  Finance, to which was referred the bill (S.
                  607) to amend title XVIII of the Social Security Act to provide for
                  a five-year extension of the rural community hospital demonstra-
                  tion program, and for other purposes, having considered the same,
                  reports favorably thereon with an amendment and an amendment
                  to the title and recommends that the bill, as amended, do pass.
                                I. LEGISLATIVE BACKGROUND
                    The  Committee on  Finance, to which was referred the bill (S.
                  607) to amend title XVIII of the Social Security Act to provide for
                  a five-year extension of the rural community hospital demonstra-
                  tion program, and for other purposes, having considered the same,
                  reports favorably thereon with an amendment and an amendment
                  to the title and recommends that the bill, as amended do pass.
                  Background  and need for legislative action
                    The  Centers for Medicare and Medicaid Services (CMS) is con-
                  ducting the Rural  Community  Hospital Demonstration Program
                  which started as a five year program authorized in section 410A of
                  the Medicare Prescription Drug, Improvement, and Modernization
                  Act (MMA)  of 2003. The demonstration was expanded and extended
                  for an additional five year period in sections 3123 and 10313 of the
                  Patient Protection and Affordable Care Act (PPACA) of 2010.
                    Congress established this demonstration in response to the finan-
                  cial concerns of certain small, rural hospitals. The demonstration
                  is intended to test the feasibility and advisability of cost-based re-
                     49-010

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