Rural Hospital Closure Relief Act of 2025
Rural Hospital Closure Relief Act of 2025
Plain Language Summary
# Rural Hospital Closure Relief Act of 2025 - Summary **What It Does:** This bill would expand which rural hospitals can qualify as "Critical Access Hospitals" (CAHs), a special Medicare classification that provides enhanced payment rates to help smaller hospitals stay financially viable. Currently, only hospitals meeting strict distance requirements or those certified before 2006 can qualify. The bill would temporarily allow additional struggling rural hospitals to become CAHs if they're small, serve areas with many uninsured or low-income patients, have lost money for two straight years, and develop a plan to become financially stable. This temporary expansion would last for nine years. **Who It Affects:** Rural hospitals facing financial difficulties would be the primary beneficiaries, along with the communities they serve.
The change could also affect Medicare (the federal health insurance program for seniors and some disabled individuals), as it would expand which hospitals receive enhanced federal payments. Rural patients, particularly those in medically underserved areas, could benefit if the bill helps keep their local hospitals open. **Current Status:** The bill (HR 6240) was introduced by Rep. Eugene Vindman (D-VA) in the 119th Congress and is currently in committee, meaning it hasn't yet been debated or voted on by the full House of Representatives.
CRS Official Summary
Rural Hospital Closure Relief Act of 2025This bill temporarily allows additional hospitals to qualify as critical access hospitals (CAHs) that receive special payment under Medicare.Currently, in order to qualify as a CAH under Medicare, a hospital must either (1) be located more than 35 miles (or 15 miles in mountainous regions or areas with only secondary roads) from another hospital, or (2) have been certified prior to January 1, 2006, by the state as a necessary provider of services in the area.The bill allows a hospital to also qualify if the hospital is a small, rural hospital that (1) serves a health professional shortage area, or a high number of low-income individuals or Medicare beneficiaries; (2) has experienced financial losses for two consecutive years; and (3) attests to having a strategic plan to address financial solvency and to committing to provide a service that is in high demand in the hospital's service area. This authority expires nine years after the bill's enactment.The Government Accountability Office must study the effects of the bill's implementation. In addition, the Medicare Payment Advisory Commission must study and recommend payment systems for rural hospitals under Medicare. The Centers for Medicare & Medicaid Services must subsequently establish a mechanism and issue guidance on how newly designated CAHs may transition to different payment models under Medicare, including any new payment models recommended by the commission.
Latest Action
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.