Sens. Smith, Moran Introduce Bipartisan Legislation to Strengthen Rural Hospitals

WASHINGTON, D.C. - U.S. Senators Tina Smith (D-MN) Jerry Moran (R-KS) this week introduced the Rural Emergency Hospital Designation Improvement Act (REH 2.0), bipartisan legislation to expand access to federal resources for rural hospitals through the Rural Emergency Hospital (REH) Medicare designation. This legislation would allow more Critical Access Hospitals (CAH) and rural hospitals at risk of closure to sustain health care services in rural communities, and it would make technical improvements to the designation. The legislation is cosponsored by Sens. Tommy Tuberville (R-AL), Katie Britt (R-AL), Shelley Moore Capito (R-WV), Cindy Hyde-Smith (R-MS) and Roger Marshall, M.D., (R-KS).

"Rural hospitals are vital for families in small towns and rural communities. These hospitals not only provide care close to home, they're also economic engines for their region," said Sen. Smith. "But many rural hospitals face increasingly dire financial strain and workforce shortages, forcing them to cut services or even close down altogether. This important legislation is just one tool in the toolbox to help rural hospitals on the verge of closure keep their doors open. Make no mistake, much more is needed to ensure the health and wellness of rural hospitals and families.

"I have visited every hospital in Kansas numerous times, and these conversations help guide my efforts to make certain health care providers across our state have the support they need to provide critical services to patients in their communities," said Sen. Moran. "During these visits, providers shared with me their recommendations for strengthening the Rural Emergency Hospital designation so it can better support the struggling facilities it was originally intended to serve. The legislation I am introducing with Senator Tina Smith is the direct result of what we have heard from rural hospitals and health care providers in our states, and it makes needed improvements to the program to help make certain patients can continue to access critical health care services in their communities for years to come."

The REH Designation Improvement Act is also supported by the National Rural Health Association.

The provisions in the REH Designation Improvement Act are the result of numerous conversations Sens. Smith and Moran held with rural health care providers and CEOs of hospitals that are eligible for the REH designation. REH is a Medicare provider designation that offers certain rural hospitals the opportunity to convert and continue operating with limited services rather than closing.

The Rural Emergency Hospital Designation Improvement Act would:

• Allow previously closed rural hospitals to re-open and apply for the Rural Emergency Hospital designation if they can demonstrate they met all eligibility requirements between Jan. 1, 2015, and Dec. 27, 2020.
• Direct the Secretary of Health and Human Services (HHS) to create a waiver program for facilities operating similarly to an REH in order to convert to an REH.
• Allow REH facilities to maintain or create a unit for inpatient psychiatric care, obstetric care and allow for limited inpatient rehabilitation services.
• Require the Centers for Medicare & Medicaid Services to provide additional funding for laboratory services.
• Clarify that REH facilities are eligible for Small Rural Hospital Improvement grants.
• Direct the Secretary of HHS to allow an REH to be eligible as a National Health Service Corp site.
• Authorize REH facilities to transfer patients from acute care to a Skilled Nursing Facility without leaving the hospital, in accordance with the Social Security Act.
• Allow an REH facility to revert back to a Critical Access Hospital (CAH) to regain necessary provider status, only if the facility was designated a necessary provider prior to converting to REH.
• Clarify state Medicaid agencies can pay REH facilities as hospitals.

Full text of the legislation can be found HERE.

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