To amend title XVIII of the Social Security Act to establish a definition of essential health system in statute.

This bill (HR 7397) would define "essential health system" in federal law to specifically include certain hospitals serving high numbers of low-income patients. It targets non-Federal, non-profit hospitals that meet one of three criteria: having Medicaid disproportionate share status, serving at least 35% low-income Medicare patients, or receiving significant uncompensated care payments under Medicare. The definition applies to hospitals already designated under existing Medicaid and Medicare programs. This is a technical clarification to standardize how these hospitals are identified in federal statutes.