To amend title XIX of the Social Security Act to establish a definition of essential health system in statute and for other related purposes.

Key Points

• This bill, introduced by Representative Trahan and a bipartisan group, creates a legal definition for "essential health systems." These are hospitals that provide a large amount of care to people on Medicaid or those who cannot afford to pay for their medical bills.
• To qualify for this new status, a hospital must be a non-profit or run by a local government. It must also show that at least 35% of its patients are low-income or that it ranks in the top 16% of hospitals in its state for providing care to people who cannot pay.
• Many hospitals that serve poor communities struggle financially because they treat many patients who do not have private insurance. By giving these hospitals a specific name in the law, the government can more easily track them and potentially provide them with extra financial help in the future.
• A government group called MACPAC will be required to update a list of these hospitals every year. They will also create a ranking system to see which hospitals are doing the most work for low-income families compared to other hospitals in their city, state, and across the country.
• Once a hospital is labeled an "essential health system," that status lasts for five years as long as they keep meeting the requirements. This label is intended to help lawmakers decide where to send extra funding to make sure these critical community services stay open.