CHEYENNE - A bill signed by Gov. Dave Freudenthal last week sets aside $4 million in state matching funds for an endowment program to benefit 16 rural and critical access hospitals across the state.

"Small hospitals are hurting out here," bill sponsor Sen. Ray Peterson, R-Cowley, said. "They don't have the high-cost operations that bring in money, like the hospitals in Casper, Gillette and Cheyenne."

Peterson said the bill would allocate $250,000 that could be accessed over the next five years by each of the hospitals eligible to participate in the Wyoming Critical Access/Rural Hospital Endowment Challenge program. In order to receive the funds, he said, the hospitals will be required to raise funds on their own first.

"The question is always, 'What are they doing to help themselves before the state kicks in money?"' Peterson said. "If they have the full six mills (of property tax) levied in that area, we'll match their fundraising 100 percent up to the $250,000 limit, and if they have three mills levied, we'll match half of what they raise - so they would need to generate $500,000 on their own to get the $250,000."

Peterson said all critical access hospitals are eligible for the program, as well as rural hospitals with 40 beds or fewer. Hospitals owned by private, not-for-profit entities that are operating in a county without other qualified facilities could also be eligible to receive the state matching funds.

Wyoming Hospital Association President Dan Perdue said hospitals located in Cody, Powell, North Big Horn, South Big Horn, Thermopolis, Kemmerer, Star Valley, Rawlins, Lusk, Torrington, Douglas, Buffalo, Newcastle, Wheatland, Sundance and Worland can participate.

Perdue said his organization supported the measure: "Even though it didn't benefit all of our hospitals, it does benefit a lot of them."

Peterson said it didn't make sense for all hospitals to be eligible for the program.

"We don't include everybody, because would $250,000 really help hospitals in Cheyenne or Gillette with a $70 million cash reserve?" he said.

Trudy Chittick, chief executive officer of Hot Springs County Memorial Hospital in Thermopolis, said all rural hospitals are seeing greater financial challenges because of the increasing number of people who aren't able to pay.

"Our particular hospital spends about a half-million dollars in charity care and $800,000 in bad debt for those who don't qualify under the standards for charity care," Chittick said. "Right off the bat, there's over $1 million in charges that we know we won't be recovering. Since we only operate at a gross revenue of $14 million, that percentage becomes significant."

Chittick said infrastructure needs are also overwhelming for rural hospitals. She said this year the 50-year-old Thermopolis facility needs a new roof, and last year she spent $2.5 million on a new boiler system and a new heating, ventilating, and air conditioning system.

In addition, Chittick says there are large costs associated with keeping up with technological advancements.

"We feel the communities should have some ownership in the hospital, and of course the hospital itself should help fundraise and the state can help out with those matching funds," Chittick said. "When you do something together, you learn to appreciate it more. This program helps financially and it also helps bring people together."