HYDE-SMITH COSPONSORS NEW BIPARTISAN LEGISLATION TO STRENGTHEN RURAL HOSPITALS

HYDE-SMITH COSPONSORS NEW BIPARTISAN LEGISLATION TO STRENGTHEN RURAL HOSPITALS

Rural Emergency Hospital Improvement Act Makes Changes to Bolster & Improve Original Lifeline Program for Rural Communities

WASHINGTON, D.C. - U.S. Senator Cindy Hyde-Smith (R-Miss.) this week joined U.S. Senators Jerry Moran (R-Kan.) and Tina Smith (D-Miss.) in introducing new legislation to broaden access to a federal Medicare reimbursement program that can help more rural hospitals remain open to serve patients.

The Rural Emergency Hospital Improvement Act or REH 2.0 (S.5164) would ease statutory limitations on the Centers for Medicare and Medicaid Services (CMS) Rural Emergency Hospital (REH) program, which offers Critical Access Hospitals and rural hospitals with under 50 beds an opportunity to convert to a different Medicare designation with higher reimbursement rates in exchange for reducing certain service offerings.

"We're trying every option we can to give rural hospitals a better chance to stay open. This REH 2.0 legislation is another attempt to build broader eligibility and greater flexibility options within the Rural Emergency Hospital program so that more rural hospitals can continue or resume serving patients," said Hyde-Smith, who also introduced an REH measure in May 2025. "I am pleased to join Senator Moran in offering this bill for consideration and remain committed to passing legislation to improve the outlook for rural hospitals and clinics."

REH 2.0 would maintain the original intent of REH designations but offer additional flexibility to accept more eligible rural hospitals that are at risk of closure. The bill also includes the text of the REH Adjustment Act, which expands eligibility to previously closed hospitals and offers them the opportunity to reopen and apply for REH. In addition, it provides statutory flexibility for hospitals to maintain or create a distinct unit for inpatient psychiatric care and allow for limited inpatient rehabilitation services as well as authorize REH facilities to enter into swing bed agreements as defined in the Social Security Act.

Endorsed by the National Rural Health Association, S.5164 is also cosponsored by U.S. Senators Tommy Tuberville (R-Ala.), Katie Britt (R-Ala.), Shelley Moore Capito (R-W.Va.), and Roger Marshall, M.D. (R-Kan.).

More than 150 rural hospitals have closed since 2010, with nearly 100 of those closures happening between 2015 and 2023. The financial sustainability of rural hospitals has been increasingly challenged by lower patient volumes, high proportions of uninsured or underinsured patients, supply chain shortages, and difficulties in recruiting and retaining healthcare professionals.

In addition to authoring the Rural Health Sustainability Act (S.1800), Hyde-Smith in May joined U.S. Senator Charles Grassley in introducing the Rural Community Hospital Demonstration Reauthorization Act to reauthorize the Rural Community Hospital Demonstration (RCHD) program for another five years. The RCHD program, in which six Mississippi hospitals are enrolled, allows rural hospitals to test innovative Medicare hospital payment models that improve financial sustainability and support health care access.

###