Rural Emergency Hospital Designation Improvement Act

The Rural Emergency Hospital Designation Improvement Act expands eligibility for facilities to convert into rural emergency hospitals by relaxing certain operational requirements and clarifying rules for units providing psychiatric, rehabilitation, or obstetric care. It establishes a new payment structure that increases reimbursement by 5 percent for diagnostic laboratory tests starting in 2027 and allows these hospitals to use swing beds for extended care services. The legislation also ensures that rural emergency hospitals are recognized as health professional shortage areas to attract medical staff and includes their services in Medicaid coverage plans. Additionally, the bill permits facilities that revert to critical access hospital status to regain their previous necessary provider designation and makes them eligible for specific improvement grants.