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Changes in federal rules helping South Dakota hospitals

Published in Health and Medicine Week, August 2nd, 2004

Federal rule changes have been good for smaller hospitals, the head of a health care group in South Dakota said.

John Porter, president of the Avera Health System, said most operations rely on Medicare patients for the bulk of their funding.

In the past those dollars have fallen short. But a change in policy now classifies many smaller hospitals as "critical access facilities" that receive a higher Medicare reimbursement, said Porter.

The change has helped hospitals recover more of their costs so they can stay open, he said.

The biggest concern is whether the federal government can continue to fund Medicare at...

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