Bill Summary
The "Rural Emergency Hospital Financial Stability Act" is legislation aimed at enhancing the financial viability of rural emergency hospitals by clarifying their status under Medicaid. Specifically, it amends Title XIX of the Social Security Act to ensure that services provided by rural emergency hospitals are recognized and reimbursed as outpatient hospital services under Medicaid. This includes provisions for services delivered in distinct part units of rural emergency hospitals that function as nursing facilities. The amendments take effect immediately upon enactment and require the Secretary of Health and Human Services to establish regulations within one year to facilitate implementation. The overall goal is to support rural healthcare facilities and improve access to emergency services in underserved areas.
Possible Impacts
The "Rural Emergency Hospital Financial Stability Act" has several potential impacts on individuals and communities, particularly those in rural areas. Here are three examples of how this legislation could affect people:
1. **Increased Access to Healthcare Services**: By classifying rural emergency hospitals as outpatient hospitals for Medicaid payment purposes, the legislation may enhance access to essential healthcare services for residents in rural areas. Patients who previously faced barriers to receiving care due to distance or limited hospital services may find it easier to obtain emergency and outpatient services, leading to improved health outcomes.
2. **Financial Stability for Rural Hospitals**: The clarification of Medicaid payment for rural emergency hospitals could provide these facilities with necessary financial support. This stability may help prevent closures or reductions in services, ensuring that rural communities continue to have access to emergency care. This is particularly crucial for older adults and individuals with chronic conditions who rely on nearby healthcare facilities.
3. **Expanded Services in Nursing Facilities**: The legislation allows for Medicaid reimbursement for services provided in nursing facilities that are part of a rural emergency hospital. This could enable nursing facilities to offer a broader range of services, enhancing the quality of care for residents. Families of individuals in these facilities may benefit from improved care options and greater peace of mind knowing that their loved ones have access to necessary medical support.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4277 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 4277
To amend Title XIX of the Social Security Act to clarify that rural
emergency hospitals are treated as outpatient hospitals for purposes of
Medicaid payment, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 2, 2025
Mr. Davis of North Carolina (for himself and Mr. Bergman) introduced
the following bill; which was referred to the Committee on Energy and
Commerce
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A BILL
To amend Title XIX of the Social Security Act to clarify that rural
emergency hospitals are treated as outpatient hospitals for purposes of
Medicaid payment, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rural Emergency Hospital Financial
Stability Act''.
SEC. 2. CLARIFICATION OF MEDICAID PAYMENT FOR RURAL EMERGENCY
HOSPITALS.
(a) Amendment to Medicaid Statute.--Paragraph (2)(A) of Section
1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) is amended by
inserting the following after ``outpatient hospital services'':
``(including rural emergency hospital services, as defined in section
1861(kkk), when such services are available),'';
(b) Nursing Facility Amendment.--Paragraph (4)(A) of Section
1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) is amended by
inserting ``but including services provided in a nursing facility that
is a distinct part unit of a rural emergency hospital, as defined in
section 1861(kkk)(2)'' after ``diseases''.
(c) Effective Date.--The amendments made by this Act shall take
effect on the date of enactment, and shall apply to services furnished
on or after such date.
SEC. 3. RULEMAKING.
Not later than 12 months after the date of enactment of this Act,
the Secretary of Health and Human Services shall issue final
regulations to carry out the amendments made by this Act.
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