Media Contact: Susan McAvoy, (202) 720-4623
susan.mcavoy@usda.gov
Public Contact: Brenda Morton, (202) 720-2367
bmorton@rurdev.usda.gov
WASHINGTON, December 7, 1999 -- Agriculture Secretary Dan Glickman today announced a new program to provide financial assistance to rural health care providers who experience Year 2000 (Y2K) computer problems. Through USDA's Community Facilities program, emergency guaranteed lines of credit will be available to medical facilities such as hospitals, nursing homes, medical clinics, dental clinics, pharmacies and home health care agencies. Emergency funds may be used to pay employee wages, utility expenses, medical and office supplies and hardware or software upgrades to repair Y2K conversion problems.
"We hope that rural health care providers won't have any Y2K issues after January 1st," Glickman said. "But for those that do, this new emergency line of credit will provide them with working capital to keep their facility running while they fix Y2K computer problems."
One potential problem area for rural health care providers is their ability to successfully process medical billing information and receive payment for claims. A significant disruption in billing or collecting from patients and health insurers, including Medicare and Medicaid, could cause cash-flow problems effecting employees, suppliers and communities.
"The local hospital is often the largest employer in a rural community," said Jill Long Thompson, USDA under secretary for rural development. "A single health care facility is also often the sole resource for health-related services in many rural communities. It is critical that USDA help ensure that our rural customers receive the same quality health care after January 1 as they had on December 31."
The new emergency line of credit will be made and serviced by commercial lenders, with up to 90 percent guaranteed by USDA. Under its Community Facilities program, USDA makes guaranteed loans to build or improve essential facilities in rural communities, including hospitals and nursing homes, libraries, schools, fire stations and day care centers, among others.
For more information about Rural Development programs, visit your local USDA Rural Development office, USDA Service Center, or call the Rural Development national office at (202) 720-1490.
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