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Congress·In Committee·9 months ago

House Bill Would Boost Medicare Pay for Rural Hospitals at Risk of Closing

Also known as: Save America’s Rural Hospitals Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Key Points

  • This bill aims to stop rural hospitals from closing by increasing the money they receive from Medicare and Medicaid. It stops automatic budget cuts for these facilities and ensures they get paid more for treating patients in areas where it is expensive to provide care.
  • People living in small towns would benefit from more stable local healthcare. The plan makes permanent the higher pay for rural ambulance services and allows rural clinics to continue offering telehealth visits, which were expanded during the pandemic.
  • Since 2025, over 150 rural hospitals have closed, and hundreds more are at risk. This policy addresses the fact that rural residents are often older and sicker but have to travel twice as far for emergency care compared to people in cities.
  • The bill removes strict rules that currently limit how long patients can stay in small rural hospitals. It also makes it easier for states to designate struggling facilities as 'critical access hospitals,' which helps them qualify for more federal financial support.
  • New grant programs would be created to help rural hospitals upgrade their technology and train staff. These funds would also help facilities transition to new models, like becoming standalone emergency rooms or adding mental health and addiction services.
Healthcare

Milestones

2 milestones2 actions
Jun 3, 2025House

Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Jun 3, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

60 days after enactment

Sequestration exemption and bad debt reimbursement changes take effect

Rural hospitals would stop seeing automatic budget cuts to their Medicare payments and would receive higher reimbursement for unpaid patient bills, improving their financial stability within a couple months of enactment.

2025-10-01

Wage index floors and rebased target amounts begin for FY2026

Starting October 1, 2025, rural hospitals in low-wage areas would receive boosted Medicare payments through new wage index floors (minimum 0.85) and updated base payment calculations, helping the most financially vulnerable facilities stay afloat.

120 days after enactment

HHS issues regulations for expanded critical access hospital designations

Within 120 days of enactment, the Department of Health and Human Services must finalize rules allowing states to designate up to 175 additional struggling hospitals as critical access hospitals, opening the door for these facilities to receive higher Medicare reimbursement rates.

Related News

3 articles
The Plumas Sun·3 months ago

PDH panel discusses new facility, maternity care, Medicaid

Local hospital officials expressed concern that the Save America's Rural Hospitals Act, which would restore financial stability for rural facilities, has been stuck in committee since June. Officials warned that without its passage, rural hospitals face immediate financial losses.

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Talk Business & Politics·over 1 year ago

CD2 debate: Hill, Jones oppose nationwide abortion ban

During a congressional debate, candidate Marcus Jones pledged to co-sponsor the Save America's Rural Hospitals Act to increase Medicaid reimbursements, addressing concerns from hospital administrators about the financial viability of rural healthcare in Arkansas.

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Facing South·about 4 years ago

Medicaid expansion could be a lifeline for rural hospitals in the South

Federal lawmakers introduced the Save America's Rural Hospitals Act to proactively address the closure crisis. The bill would extend payments for low-volume and Medicare-dependent hospitals and provide $15 million in grant money to stabilize rural facilities.

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Source Information

Document Type

Congressional Bill

Official Title

Save America’s Rural Hospitals Act

Bill NumberHR 3684
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sponsor

Cosponsors

(4)
D: 3R: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.