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 the Bill Does:** This bill would help rural hospitals stay open by making it easier for them to qualify as "Critical Access Hospitals" (CAHs), a special Medicare designation that provides more favorable payment rates. Currently, only hospitals that are geographically isolated (more than 35 miles from competitors) or were certified before 2006 can become CAHs. The bill would add a new path: hospitals in underserved rural areas that are losing money and have a plan to become financially stable could also qualify for CAH status for nine years. **Who It Affects:** Rural hospitals struggling with financial losses would be the primary beneficiaries.
Patients in rural communities, Medicare beneficiaries, and low-income individuals in rural areas would potentially benefit from improved access to local hospital services. The bill would also affect Medicare's budget, as CAH designation means higher reimbursement rates to hospitals. **Current Status:** The bill was introduced by Senator Richard Durbin (D-IL) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full Senate.
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
Read twice and referred to the Committee on Finance. (text: CR S820-821)