By Organ Mountain News on May 29, 2026

Senate passes Heinrich, Luján-backed bill aimed at keeping rural New Mexico hospitals open

The U.S. Senate passed legislation cosponsored by Sens. Martin Heinrich and Ben Ray Luján to extend a federal program supporting rural community hospitals in New Mexico and across the country.

U.S. Sens. Martin Heinrich and Ben Ray Luján helped secure Senate passage of legislation extending a federal program supporting rural community hospitals. (Courtesy photos / Office of Sen. Martin Heinrich, Office of Sen. Ben Ray Luján)

Legislation would extend a federal demonstration program that helps certain rural hospitals receive higher Medicare reimbursement rates

Organ Mountain News report

WASHINGTON - The U.S. Senate has passed legislation cosponsored by New Mexico Sens. Martin Heinrich and Ben Ray Luján that aims to help keep rural hospitals open by extending a federal demonstration program for another five years.

The Rural Community Hospital Demonstration Reauthorization Act would continue the Rural Community Hospital Demonstration program, which allows certain rural hospitals to receive Medicare payments designed to better reflect the cost of care.

According to Heinrich and Luján, some rural hospitals are too large to qualify for Critical Access Hospital status but still struggle financially under Medicare’s standard reimbursement system.

New Mexico hospitals currently participating in the program include Roosevelt General Hospital in Portales and Artesia General Hospital in Artesia.

“Senate passage of our legislation to extend the Rural Community Hospital Demonstration Program is an important step toward helping folks get needed emergency care in minutes, not hours,” Heinrich said in a statement.

Luján said nearby hospital access remains critical for rural communities across New Mexico.

“Right now, many rural hospitals in New Mexico are at risk of closing,” Luján said in a statement. “Extending the Rural Community Hospital Demonstration program is essential to helping keep those doors open and ensuring families can get the care they need.”

The program has supported 55 rural hospitals nationwide since 2005, according to the senators’ offices.

Kaye Green, CEO of Roosevelt General Hospital, said the program helps support services that often operate at a financial loss for smaller hospitals because of low patient volume.

“This program helps to ensure long-term sustainability and availability of vital healthcare in rural communities,” Green said in a statement.

The legislation now heads to the U.S. House of Representatives for consideration.

The full text of the legislation is here.

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