DuBOIS — Steven M. Fontaine, CEO of Penn Highlands Healthcare, recently participated in a U.S. Congressional briefing on Capitol Hill hosted by Vizient Inc. regarding Hospitals’ Financial Health: The Complex Ecosystem of Provider Reimbursement.

He was a member of a three-person panel of prominent leaders from health systems throughout the United States. Fontaine began his remarks discussing the significant impact that Penn Highlands Healthcare has on the Pennsylvania economy. In Fiscal Year 2024, the health system contributed a total economic benefit of $1.9 billion to the economy and the rural areas it serves across 26 counties in northwestern, central and southwestern Pennsylvania. He talked about the reimbursement mix for the nine hospitals in the Penn Highlands Healthcare system and how each facility relies on targeted federal support to remain viable.

“Our entire rural healthcare system is built on the foundation of government payer support and enhanced reimbursement programs; without them, we would be forced to make unacceptable tradeoffs such as cutting services, reducing staff or walking away from communities that have no other alternatives,” Fontaine told the audience of congressional staff and industry stakeholders.

He outlined how the challenges facing healthcare are significant and growing.

“While Penn Highlands Healthcare offers several services that generate positive margins, many other essential services are delivered at a financial loss in order to meet the needs of our communities,” Fontaine explained. “The current trajectory is not sustainable. We are constantly forced to make difficult decisions such as which services we can afford to continue offering.”

Fontaine presented a call to action for Congress and federal agencies. He urged them to:

• Adequately fund Medicare and Medicaid programs ensuring reimbursements reflect the true cost of rural care.
• Protect and preserve the federal government’s 340B Drug Pricing Program, which allows eligible hospitals and clinics that typically serve vulnerable or rural populations to purchase outpatient drugs at significantly reduced prices from manufacturers.
• Expand grant opportunities for rural health infrastructure allowing systems, such as Penn Highlands Healthcare, to innovate, invest and sustain vital access.

Fontaine concluded, “Our hospitals are not just providers of care — they are lifelines for our communities, anchors of local economies and vital support systems for our most vulnerable populations. Without immediate and sustained support, the services we provide are at risk. The financial pressures, workforce shortages, regulatory burdens and policy challenges we face are not just numbers on a balance sheet — they represent real people, families and communities that depend on us.”