Bill > HR6240

This bill aims to provide relief for rural hospitals by modifying the criteria for designating Critical Access Hospitals (CAHs) under Medicare. Specifically, the bill allows states to certify certain hospitals as CAHs that previously would not have qualified under the 35-mile rule, with some important limitations. Eligible hospitals must be located in rural areas, have faced financial challenges (with two consecutive years of negative operating margins), and commit to expanding or introducing a high-demand service line such as obstetrics or behavioral health. The bill caps the total number of new CAH designations at 120 nationwide, with no more than 5 per state, and includes a 9-year sunset provision. Additionally, the bill requires these newly designated hospitals to submit annual reports on their service expansions and gives the Secretary of Health and Human Services the power to revoke the designation if reporting requirements are not met. The legislation also mandates two comprehensive studies: one by the Government Accountability Office to assess the impact of these new CAH designations, and another by the Medicare Payment Advisory Commission to examine payment systems for rural hospitals. Lastly, the bill provides a transition mechanism for these hospitals after the 9-year period, allowing them to shift to alternative payment models or revert to previous payment structures.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6240/all-info