DICKINSON (AP) - A plan to ease the financial woes of St. Joseph's Hospital and Health Care Center is linked to the hospital in Richardton, about 25 miles away.

The Richardton Memorial Hospital and Health Care Center Inc., has been designed as a critical access hospital through the federal Centers for Medicare and Medicaid Services. The designation, given to rural hospitals, provides higher Medicare reimbursements, officials say.

Under federal law, critical access facilities must be at least 35 miles from each other. That means St. Joseph's in Dickinson is too close to Richardson to seek the designation and the higher reimbursements that could help it cope with years of operating losses. Officials estimate the critical access status could bring the Dickinson hospital about $4 million more a year from the federal government.

Kerry Weems, the administrator for the federal Center for Medicare and Medicaid Services, joined Sens. Kent Conrad and Byron Dorgan, and Rep. Earl Pomeroy, D-N.D., in a recent visit to Dickinson. Officials suggested the Richardton hospital could be converted to a long-term nursing care center, giving up its status as a critical access hospital. But the state has a moratorium on nursing home beds.

A spokesman for Gov. John Hoeven said he does not have the power to waive the moratorium.

"We've looked into (waiver authority) and the governor's legal counsel has looked into it," spokesman Don Canton said. "That's legislatively established."

State and federal officials are looking at other options, including the purchase of nursing home beds for Richardton from another facility.

State Human Services Director Carol Olson said she has been discussing the situation with the regional Medicare office in Denver.

"The buying of the beds would be something the community of Dickinson would have to make a decision on," Olson said Friday. Other possibilities being explored include a waiver of the 35-mile rule.

St. Joseph's is owned by Catholic Health Initiatives of Denver. Chris Jones, a CHI director in Fargo, said officials will continue to work with the Richardton hospital on a solution.