HB 971 → ACT 859
A Historic Step Forward for Louisiana’s Independent Rural Health Clinics
What Was HB 971?
HB 971, authored by Representative Joe Stagni, was legislation designed to address the Medicaid reimbursement disparity between independent Rural Health Clinics (Type 1 RHCs) and provider-based Rural Health Clinics (Type 2 and Type 3 RHCs).
The legislation directs the Louisiana Department of Health (LDH) to take the necessary actions to equalize Medicaid reimbursement rates between independent and provider-based RHCs. Under the enacted law, independent RHC encounter rates will increase by $41.50 in each of fiscal years 2026–2027 and 2027–2028, with the annual Medicare Economic Index (MEI) inflationary adjustment also applied.
For independent Rural Health Clinics, this represents an important step toward greater financial stability and sustainability. Stronger reimbursement helps independent clinics continue providing essential primary care and other services in rural communities where access to healthcare can already be limited.
HB 971 → ACT 859
Signed June 8, 2026
$41.50 + $41.50 Medicaid Encounter Rate Increase Toward Reimbursement Equity for Independent RHCs
Why HB 971 Mattered
Independent Rural Health Clinics play a critical role in Louisiana's healthcare system. They provide accessible care to patients in rural communities, employ local healthcare professionals, and often serve as one of the few sources of primary healthcare in their communities.
However, differences in Medicaid reimbursement created financial challenges for independent RHCs competing to maintain sustainable operations while continuing to serve their communities.
HB 971 was about addressing that disparity.
The goal was not simply to increase reimbursement, it was to help create a more sustainable environment for independent RHCs so they can continue serving Louisiana's rural communities for generations to come.
Over the course of the effort, LaRHC helped:
Educate legislators about the challenges facing independent RHCs
Advocate for Medicaid reimbursement equity
Coordinate communication and grassroots outreach
Encourage RHC owners and providers to engage directly with legislators
Mobilize members and supporters to attend legislative hearings
Provide information and resources for advocacy efforts
Maintain communication with legislators throughout the legislative process
Coordinate in-person support at the Capitol
Work alongside our legislative advocate/lobbyist throughout the process
Build support from independent RHC providers across Louisiana
Keep members informed as HB 971 moved through the Legislature
This was not an easy battle, but it was a necessary one.
The effort demonstrated what can happen when independent rural healthcare providers come together around a shared mission.
The Journey to Act 859
More Than a Legislative Victory
The passage of HB 971 was the result of extensive advocacy, collaboration, and persistence from independent Rural Health Clinics and their supporters.
Louisiana Rural Health Collective worked alongside independent RHC owners, providers, healthcare leaders, legislators, and advocates to bring attention to the reimbursement disparity and explain its impact on rural healthcare.