Capito, Colleagues Introduce Legislation to Strengthen Rural Hospitals

WASHINGTON D.C. - This week, U.S. Senator Shelley Moore Capito (R-W.Va.) helped introduce the Rural Emergency Hospital Designation Improvement Act (REH 2.0), legislation led by U.S. Senators Jerry Moran (R-Kan.) and Tina Smith (D-Minn.), to expand access to federal resources for rural hospitals through the Rural Emergency Hospital (REH) Medicare designation. REH 2.0 would allow more Critical Access Hospitals (CAH) and rural hospitals at risk of closure to sustain health care services in rural communities, and it would make technical improvements to the designation.

"Across West Virginia and in rural communities nationwide, far too many hospitals are facing challenges that threaten their ability to maintain operations," Senator Capito said. "The Rural Emergency Hospital designation offers an important option for preserving access to care, and expanding this program by providing more flexibility is a practical step that will help more rural hospitals continue serving their communities. Keeping health care close to home strengthens our communities and gives families the confidence that care will be there when they need it most."

"I have visited every hospital in Kansas numerous times, and these conversations help guide my efforts to make certain health care providers across our state have the support they need to provide critical services to patients in their communities," Senator Moran said. "During these visits, providers shared with me their recommendations for strengthening the Rural Emergency Hospital designation so it can better support the struggling facilities it was originally intended to serve. The legislation I am introducing with Senator Tina Smith is the direct result of what we have heard from rural hospitals and health care providers in our states, and it makes needed improvements to the program to help make certain patients can continue to access critical health care services in their communities for years to come."

"Rural hospitals are vital for families in small towns and rural communities. These hospitals not only provide care close to home, they're also economic engines for their region," Senator Smith said. "But many rural hospitals face increasingly dire financial strain and workforce shortages, forcing them to cut services or even close down altogether. This important legislation is just one tool in the toolbox to help rural hospitals on the verge of closure keep their doors open. Make no mistake, much more is needed to ensure the health and wellness of rural hospitals and families."

In addition to Senator Capito, the legislation is cosponsored by U.S. Senators Tommy Tuberville (R-Ala.), Katie Britt (R-Ala.), Cindy Hyde-Smith (R-Miss.) and Roger Marshall, M.D., (R-Kan.).

The Rural Emergency Hospital Designation Improvement Act would:

• Allow previously closed rural hospitals to re-open and apply for the Rural Emergency Hospital designation if they can demonstrate they met all eligibility requirements between Jan. 1, 2015, and Dec. 27, 2020.
• Direct the Secretary of Health and Human Services (HHS) to create a waiver program for facilities operating similarly to an REH in order to convert to an REH.
• Allow REH facilities to maintain or create a unit for inpatient psychiatric care, obstetric care and allow for limited inpatient rehabilitation services.
• Require the Centers for Medicare & Medicaid Services to provide additional funding for laboratory services.
• Clarify that REH facilities are eligible for Small Rural Hospital Improvement grants.
• Direct the Secretary of HHS to allow an REH to be eligible as a National Health Service Corp site.
• Authorize REH facilities to transfer patients from acute care to a Skilled Nursing Facility without leaving the hospital, in accordance with the Social Security Act.
• Allow an REH facility to revert back to a Critical Access Hospital (CAH) to regain necessary provider status, only if the facility was designated a necessary provider prior to converting to REH.
• Clarify state Medicaid agencies can pay REH facilities as hospitals.

Full text of the legislation can be found HERE.

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