(Radio Iowa)- A Michigan based health care provider has purchased the Keokuk hospital that closed on October 1st and may reopen the facility as a Rural Emergency Hospital. Governor Reynolds signed a bill into law yesterday (Tuesday) that sets up the state licensing process for Rural Emergency Hospitals. These hospitals will be eligible for higher reimbursement rates for treatment of Medicare patients along with a monthly payment from the federal government.

Rural Emergency Hospitals must keep an emergency room open 24 hours a day, seven days a week and may provide outpatient services, but they must discontinue in-patient care. Insight is the name of the Flint, Michigan, company that bought Keokuk’s closed down hospital. Insight’s chief strategy officer says with the necessary regulatory and financial support, the company aims to begin providing medical services in Keokuk later this year.

U.S. Senator Chuck Grassley, a sponsor of the bill that created the Rural Emergency Hospital framework, says it’s a reform that will be a lifeline for rural communities. Governor Reynolds says the concept will help ensure Iowans, no matter where they live, can access emergency care. State Senator Jeff Reichman, a Republican from Montour, says the new Rural Emergency Hospital designation will help rural communities and struggling hospitals. Reichman was in the governor’s office yesterday when she signed the bill into law.