(KNZA)--Holton Community Hospital CEO Carrie Lutz joined a national delegation of rural healthcare leaders in Washington, D.C. this week to meet with Secretary of Health and Human Services Robert Kennedy Jr. and senior policymakers regarding the federal legislation unofficially dubbed “The Big Beautiful Bill,” currently under Senate review.
The legislation, which proposes sweeping changes to Medicare and Medicaid, has drawn widespread concern among rural hospitals across the country—especially Critical Access Hospitals (CAHs) like Holton Community Hospital.
Representing Kansas as the sole delegate from the Kansas Hospital Association (KHA), Lutz met with federal officials including Secretary Kennedy, Hannah Anderson (Deputy Chief of Staff for Policy), and separately with staff from Kansas Congressional offices, including Senator Jerry Moran and Congressman Tracey Mann. Lutz emphasized the potential negative impact of Medicare Advantage plans, State Directed Payment reform, and looming changes to the 340B drug pricing program.
“I made it clear that these changes, if passed as currently written, would place added strain on Kansas hospitals like ours—especially as more Medicare beneficiaries are funneled into Advantage plans that often delay or deny reimbursement,” said Lutz. “Our communities simply cannot afford to lose access to local care due to policy decisions made without a rural lens.”
During the meeting with Secretary Kennedy and senior HHS leadership, several top concerns were raised:
.The growing burden of Medicare Advantage: Lutz joined peers in expressing frustration over reimbursement challenges and administrative hurdles associated with Medicare Advantage plans. One rural hospital CEO shared a case where a Humana plan abruptly terminated its contract, devastating the community's access to care.
.Costly administrative burden: In discussions with Deputy Chief Hannah Anderson, Lutz highlighted the growing number of staff hours hospitals must dedicate just to ensure claims are paid. She will follow up with federal officials to quantify the workforce cost tied to revenue cycle management under current Medicare Advantage policies.
.Support for CAHs and workforce flexibility: Lutz plans to send HHS examples of regulations that could be safely delegated to Advanced Practice Providers (APRNs or PAs), rather than requiring physicians—part of a broader rural push for smart deregulation and workforce efficiency.
In a separate meeting with Senator Jerry Moran- office, Lutz raised concerns about efforts to overhaul the 340B drug discount program. Secretary Kennedy had noted the program- rapid expansion from roughly 300 hospitals to nearly 3,000. Lutz thanked Senator Moran's office for continued work to preserve this vital support for rural providers.
“It was encouraging to see Secretary Kennedy and his team genuinely listening to our concerns,” said Lutz. “He asked detailed questions, especially regarding Medicare Advantage abuses and the regulatory barriers we face as a 14-bed Critical Access Hospital. I walked away with hope that our voices are being heard.”
Lutz noted that buses of protestors had lined the Capitol that day in response to proposed Medicaid cuts—an issue also raised during her visit with Congressman Mann- staff. While Kansas has a lower proportion of working-age adults on Medicaid, Lutz reinforced that any cuts could destabilize vulnerable populations and hospital finances statewide.
The trip was organized in partnership with the Kansas Hospital Association and the National Rural Health Association (NRHA). Lutz's participation underscores Holton Community Hospital's continued advocacy for rural health equity and sustainable care access across Jackson County and beyond.
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