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COLUMBIA, S.C. (AP/WACH) -- South Carolina's Medicaid agency will begin fully reimbursing rural hospitals this October for treating people without health insurance.

Gov. Nikki Haley and Medicaid director Tony Keck touted the shift Thursday as a way to stabilize rural hospitals that struggle to stay open.

"Getting that stability, financial stability into systems that are struggling for lots of different reasons, largely because their communities are also struggling is critical," said DHHS director Tony Keck.

Haley says the policy focuses support on hot spots of poor health.

"We know Charleston, Columbia, and Greenville are going to be okay, we're going to keep working on them and keep doing everything we can but if we don't go after those areas that are challenged and in need the most we're never going to lift up as a state," said Governor Haley.

But Democratic Rep. James Smith says it pits urban hospitals against rural ones.

"She has decided to divide us urban versus rural not bring our state together and pursue the resources that are available to make sure we have a more healthy south carolina. She's taking money away from urban hospitals and delievering it to rural," said Smith.

The state has distributed its $461 million Medicaid fund for uncompensated care to hospitals equally. That covers 60 percent of their costs. Now 19 hospitals will be reimbursed 100 percent.

Haley first announced the policy change in her State of the State address. Her news conference to explain.

The state's Medicaid agency will begin in October fully compensating rural hospitals their cost of treating patients who lack health insurance.

The agency plans to add the Bamberg hospital, if it reopens. The following lists the designated hospitals:

--Abbeville County Hospital

--Allendale County Hospital

--Barnwell County Hospital

--Chester County Hospital

--Chesterfield General Hospital

--Clarendon Memorial Hospital

--Coastal Carolina

--Colleton Medical Center

--Edgefield County Hospital

--Fairfield Memorial Hospital

--Hampton Regional Medical Center

--Lake City Community Hospital

--Laurens County Hospital

--Marion County Medical

--Marlboro Park Hospital

--McLeod Regional Medical Center in Dillon

--Newberry County Hospital

--Williamsburg Regional Hospital

Source: S.C. Department of Health and Human Services