Impact of Medicare Moratorium on Solace Hospice of Southwest Virginia Operations
The opening of Solace Hospice of Southwest Virginia has been postponed due to a temporary nationwide moratorium on new Medicare enrollments for hospice and home health services. This suspension, initiated by the Centers for Medicare & Medicaid Services (CMS) on May 13, aims to combat fraudulent activities within the hospice sector. The moratorium, set to last for six months, significantly impacts the ability of new providers, such as Solace, to commence operations.
Shanna Western, founder and executive director of Solace Hospice of Southwest Virginia, and a veteran healthcare advocate, explained that the moratorium has directly influenced their decision to halt progress. Previously the executive director at LHC Group, Western stated, “Please know that this decision is a direct result of Medicare’s nationwide moratorium... We recognized that with a moratorium that may extend far beyond the six months for which it has been initially announced, we would not be good stewards of the funding we have received thus far if we continued to try to operate indefinitely with no ability to bring in revenue to help cover the costs required to provide excellent hospice care.”
Solace Hospice was on track to launch in the summer of 2025, having secured a state license and prepared to start patient care. However, without the ability to enroll with Medicare, the nonprofit organization faces significant challenges in achieving financial sustainability. Western emphasized that continuing operations without Medicare support would endanger their capability to maintain care quality and adequate staffing levels, directly affecting their financial underwriting process.
Current conditions also affect Medicaid licensure. Alternative funding mechanisms, like sliding-scale payments and philanthropic contributions, remain insufficient to meet the facility’s operational needs. Despite these challenges, the hospice has garnered support from entities such as the Wythe-Bland Foundation and the Joint Industrial Development Authority of Wythe County, Virginia, while continuing to explore additional fundraising and research support.
Future Prospects and Advocacy
Western expressed optimism about the future, stating, “We are hopeful that this suspension is temporary. We also fully intend to advocate for ourselves and for other legitimate hospice providers affected by this nationwide moratorium. Fraud must be identified and addressed, but we do not believe that preventing legitimate providers from serving their communities is the right solution.” Solace Hospice anticipates resuming operations and serving the community once the moratorium is lifted, positioning itself to once again contribute to the essential infrastructure of community hospice care.