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Hospital Dual Classification [1]

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Date: 2026-03-02  

The National Grange supported the release of a new analysis by Magnolia Market Access examining how Medicare hospital reclassification policies are increasingly diverting resources intended for rural hospitals to large urban health systems, weakening the rural health care safety net and threatening access to care for millions of rural Americans.

The report, Hospital Dual Classification: How Urban Hospitals Are Capitalizing on Medicare Reclassification Policies, documents the rapid expansion of a practice known as dual classification, in which geographically urban hospitals reclassify as administratively rural to access rural-specific Medicare benefits while also receiving higher urban wage index payments.

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[1] Url: https://www.nationalgrange.org/2026/03/02/hospital-dual-classification/#:~:text=The%20National%20Grange%20supported%20the,Hamp

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