Rural Emergency Hospital Designation Improvement Act

This bill updates rules for rural emergency hospitals (REHs) under Medicare. It requires REHs to maintain specific specialized units (like psychiatric, rehab, or obstetric units) and adds a 5% payment increase for diagnostic lab tests starting in 2025 to cover higher costs. The bill also allows facilities converting to REH status to later revert to critical access hospital status while retaining necessary provider status and deems REHs as health professional shortage areas for staffing purposes. These changes directly affect rural hospitals seeking or operating as REHs, improving their eligibility, funding, and service capabilities.