Northeastern Health System Sequoyah (NHSS) has been selected to participate in the CMS Rural Community Hospital Demonstration Program effective May 1, a federal initiative aimed at supporting healthcare access and sustainability in rural communities.

“It is a great honor to be selected as one of 10 hospitals across the country to be awarded this designation in 2025 by CMS,” said hospital trustee Bryan Warner.

“Participation in this program will bring desperately needed funding to our rural hospital, and to be one of only 10 in the nation selected is a great and well-deserved testament to our hospital and its employees. I am thrilled for the hospital, employees and community,” added trustee Treye Girdner.

“This is a meaningful victory for NHSS and the patients that depend on us,” said NHSS trustee Dr. Bill Anderson.

“Rural hospitals have operated at a disadvantage, being underfunded and overburdened. This program is a step forward, giving the hospital additional resources to provide quality care and remain open,” added Todd Martin, hospital board chairman.

Trustee Debbie Bartel also praised the efforts to receive the program award. “Participation in the Rural Community Hospital Demonstration Program will provide NHSS more equitable reimbursement under Medicare to ensure we can continue serving patients in Sequoyah County well,” she said.

The Department of Health and Human Services Center for Medicare and Medicaid Services in December 2024 began accepting applications for an additional 10 Rural Community Hospital Demonstration program participants.

The program is designed to test the feasibility of establishing cost-based reimbursement for rural community hospitals to furnish covered inpatient hospital services to Medicare beneficiaries.

A Community Hospital is defined as a hospital that is located in a rural area, has fewer than 51 acute care inpatient beds, provides 24-hour emergency care services and is not designated or eligible for critical access hospital consideration.

Northeastern Health System Tahlequah prepared and submitted the 27-page application identifying the needs of the surrounding population and potential benefits, the strategy for financial viability and the NHSS goals for the demonstration. It is anticipated that during fiscal year 2026, the three-year program will provide an additional $600,000 in Medicare funding to NHSS.