Rural Emergency Hospital Designation Improvement Act

The Rural Emergency Hospital Designation Improvement Act expands Medicaid coverage for services provided by rural emergency hospitals and allows these facilities to offer additional inpatient units for psychiatric, rehabilitation, and obstetric care. It also creates a pathway for existing facilities that operate similarly to rural emergency hospitals to convert their status by waiving certain requirements, while permitting them to provide skilled nursing "swing bed" services under specific agreements. To support financial sustainability, the bill increases Medicare payments for diagnostic laboratory tests performed at these hospitals by 5 percent starting in 2027 and ensures that facilities reverting to critical access hospital status can regain their necessary provider designation. Additionally, the legislation designates rural emergency hospitals as health professional shortage areas to facilitate National Health Service Corps placements and includes them in the Small Rural Hospital Improvement Program grant eligibility.