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March 3, 2011

Four hospitals picked for demo program

Four Maine hospitals have been selected to participate in a federal Medicare payment program that helps rural hospitals provide critical care.

The Centers for Medicare and Medicaid Services recently selected Inland Hospital in Waterville, Maine Coast Memorial Hospital in Ellsworth, Franklin Memorial Hospital in Farmington and Miles Memorial Hospital in Damariscotta to participate in its Rural Community Hospital Demonstration Program, according to a press release from U.S. Rep. Mike Michaud. The program provides reimbursements to small rural hospitals for providing care to Medicare patients, and targets centers with low population density that are too large to be deemed critical access hospitals and receive special reimbursements, but are still "struggling under the current Medicare reimbursement formula," Michaud said in the release. The hospitals must develop ways to improve efficiency and quality of care.

The demonstration program began in 2003 with 10 hospitals, at which time Maine was not eligible. The Affordable Care Act extended the program for another five years and opened it to the 20 most rural states, including Maine. Nineteen hospitals were added to the program this year.

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