Rural Hospital Flexibility Act of 2025

#6804 | HR Congress #119

Policy Area: Health
Subjects:

Last Action: Referred to the House Committee on Ways and Means. (12/17/2025)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The **Rural Hospital Flexibility Act of 2025** aims to enhance the Medicare Rural Hospital Flexibility Program by amending existing provisions in the Social Security Act. The key objectives of the legislation are:

1. **Support for Rural Healthcare**: The Act emphasizes support for critical access hospitals, certified rural health clinics, and rural emergency hospitals in areas such as quality improvement, performance benchmarking, and addressing behavioral health and substance use issues, especially during public health emergencies.

2. **Grants to State Offices of Rural Health**: It allows for grants specifically awarded to State Offices of Rural Health, enabling them to provide financial assistance to eligible small rural hospitals based on their population ratios.

3. **Rural Health Transformation Grants**: The Act introduces five-year grants for rural health care providers to transition to new healthcare models, including rural emergency hospitals and telehealth services, ensuring that these providers can adapt to meet local community needs effectively.

4. **Technical Assistance for Rural Emergency Hospitals**: It establishes a mechanism for the Secretary to provide grants for technical support to hospitals seeking designation as rural emergency hospitals, facilitating their operational improvements and compliance.

Overall, this legislation is designed to strengthen the healthcare infrastructure in rural areas, promote innovative health service models, and ensure that rural populations have access to quality healthcare services.

Possible Impacts

Here are three examples of how the "Rural Hospital Flexibility Act of 2025" could affect people, particularly in rural communities:

1. **Improved Access to Healthcare Services**: By providing support and funding to critical access hospitals and rural health clinics, the Act aims to enhance the availability of healthcare services in rural areas. This could lead to better access to emergency care, routine check-ups, and specialized treatments, ultimately improving the health outcomes of residents in these communities.

2. **Enhanced Quality of Care**: With a focus on quality improvement, performance enhancements, and integrating behavioral health services, the legislation may lead to higher standards of care in rural hospitals. Patients may experience better treatment options and health management, particularly for chronic conditions and mental health issues, which are often underserved in rural settings.

3. **Support for Health Workforce Development**: The Act's provisions for grants aimed at education and training for hospital staff can help build a more skilled healthcare workforce in rural areas. This could lead to better patient care, as staff become more adept at billing, quality improvement practices, and managing operational challenges, which in turn may lead to reduced turnover rates and a more stable healthcare environment.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6804 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 6804

To amend title XVIII of the Social Security Act to strengthen Medicare 
               rural hospital flexibility program grants.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 17, 2025

 Mrs. Miller of West Virginia (for herself and Ms. Sewell) introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                                 A BILL


 
To amend title XVIII of the Social Security Act to strengthen Medicare 
               rural hospital flexibility program grants.

    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 Hospital Flexibility Act of 
2025''.

SEC. 2. MEDICARE RURAL HOSPITAL FLEXIBILITY PROGRAM GRANTS.

    Section 1820(g) of the Social Security Act (42 U.S.C. 1395i-4(g)) 
is amended--
            (1) by amending paragraph (1)(D) to read as follows:
                    ``(D) providing support for critical access 
                hospitals, certified rural health clinics, and rural 
                emergency hospitals (as defined in section 
                1861(kkk)(2)) for quality improvement, quality 
                reporting, performance improvements, benchmarking, 
                addressing population health, transforming services, 
                and providing linkages and services for behavioral 
                health and substance use disorders responding to public 
                health emergencies.'';
            (2) by redesignating paragraphs (3) through (7) as 
        paragraphs (4) through (8), respectively;
            (3) after paragraph (2), by inserting the following new 
        paragraph:
            ``(3) Activities to support carrying out other grants.--The 
        Secretary may award grants or cooperative agreements to 
        entities awarded grants or agreements under other provisions of 
        this subsection for purposes of supporting such entities in 
        carrying out activities under such other grants or agreements 
        by providing technical assistance, data analysis, and 
        evaluation efforts. An entity seeking a grant under this 
        paragraph shall submit an application to the Secretary at such 
        time and in such manner as specified by the Secretary.'';
            (4) in paragraph (4), as redesignated--
                    (A) in subparagraph (A)--
                            (i) in the header, by striking 
                        ``hospitals'' and inserting ``State offices of 
                        rural health''; and
                            (ii) by striking ``grants to hospitals'' 
                        and inserting ``grants to State Offices of 
                        Rural Health'';
                    (B) in subparagraph (B)--
                            (i) by redesignating clauses (i) and (ii) 
                        as subclauses (I) and (II), respectively;
                            (ii) by striking ``means a non-Federal'' 
                        and inserting the following: ``means--
                            ``(i) a non-Federal''; and
                            (iii) by striking the period at the end and 
                        inserting the following: ``; or
                            ``(ii) a rural emergency hospital (as 
                        defined in section 1861(kkk)).'';
                    (C) by amending subparagraph (C) to read as 
                follows:
                    ``(C) Application.--The State Office of Rural 
                Health shall submit an application to the Secretary on 
                or before such date and in such form and manner as the 
                Secretary specifies.'';
                    (D) by amending subparagraph (D) to read as 
                follows:
                    ``(D) Amount of grant.--With respect to funds made 
                available to make grants under this paragraph in a 
                fiscal year, the amount awarded to a State Office of 
                Rural Health shall bear the same ratio to the total 
                amount of such funds so made available as the number of 
                eligible small rural hospitals in such State bears to 
                the total number of eligible small rural hospitals in 
                all States receiving a grant under this paragraph for 
                such fiscal year propose.'';
                    (E) by amending subparagraph (E) to read as 
                follows:
                    ``(E) Use of funds.--State Offices of Rural Health 
                may use the funds received through a grant under this 
                paragraph for the purchase of computer software and 
                hardware on behalf of eligible small rural hospitals, 
                for the education and training of eligible small rural 
                hospital staff on billing, operational, quality 
                improvement, and related value-focused efforts, and for 
                other delivery system reform programs determined 
                appropriate by the Secretary.''; and
                    (F) in subparagraph (F)--
                            (i) in clause (i), by striking ``A hospital 
                        receiving a grant under this section'' and 
                        inserting ``An entity receiving a grant under 
                        this paragraph''; and
                            (ii) in clause (ii), by striking 
                        ``section'' each place such term appears and 
                        inserting ``paragraph'' in each such place;
            (5) in paragraph (5), as redesignated, by striking 
        ``paragraph (1) or (2)'' and inserting ``paragraph (1), (2), or 
        (4)''; and
            (6) by adding at the end the following new paragraphs:
            ``(9) Rural health transformation grants.--
                    ``(A) Grants.--The Secretary may award 5-year 
                grants to State Offices of Rural Health and to eligible 
                rural health care providers (as defined in subparagraph 
                (D)) on the transition to new models, including rural 
                emergency hospitals, extended stay clinics, 
                freestanding emergency departments, rural health 
                clinics, and integration of behavioral, oral health 
                services, telehealth and other transformational models 
                relevant to rural providers as such providers evolve to 
                better meet community needs and the changing health 
                care environment.
                    ``(B) Application.--An eligible rural health care 
                provider, in consultation with the State Office of 
                Rural Health in the State in which the rural health 
                care provider seeking a grant under this paragraph is 
                located, shall submit an application to the Secretary 
                on or before such date and in such form and manner as 
                the Secretary specifies.
                    ``(C) Additional requirements.--The Secretary may 
                not award a grant under this paragraph to an eligible 
                rural health care provider unless--
                            ``(i) local organizations or the State in 
                        which the hospital is located provides support 
                        (either direct or in kind); and there are 
                        letters of support from key State payers such 
                        as Medicaid and private insurance; and
                            ``(ii) the applicant describes in detail 
                        how the transition of the health care provider 
                        or providers will better meet local needs and 
                        be sustainable.
                    ``(D) Eligible rural health care provider 
                defined.--For purposes of this paragraph, the term 
                `eligible rural health care provider' includes a 
                critical access hospital, a certified rural health 
                clinic, a rural nursing home, skilled nursing facility, 
                emergency care provider, or other entity identified by 
                the Secretary. An eligible rural health care provider 
                may include other entities applying on behalf of a 
                group of rural health care providers such as a State 
                Office of Rural Health, a State or local health care 
                authority, a rural health network, or other entity 
                identified by the Secretary.
            ``(10) Rural emergency hospital technical assistance.--
                    ``(A) In general.--The Secretary may award grants 
                or cooperative agreements to eligible entities (as 
                determined by the Secretary) for the purpose of 
                providing technical assistance, data analysis, and 
                other support to hospitals that are seeking to be 
                designated, or are currently designated, as rural 
                emergency hospitals (as described in section 
                1861(kkk)(2)).
                    ``(B) Application.--An entity seeking a grant under 
                subparagraph (A) shall submit an application to the 
                Secretary at such time and in such form and manner as 
                specified by the Secretary.''.
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