Rural Emergency Hospital Designation Improvement Act

This bill seeks to strengthen the framework for rural emergency hospitals (REHs) by modifying their eligibility and operational scope. It expands the look-back period for REH eligibility to include facilities that met criteria at any point since January 1, 2015, and mandates the Secretary to promulgate regulations to waive certain requirements for facilities that operate similarly to REHs, facilitating their conversion. Furthermore, the legislation allows REHs to maintain or include distinct part units for specialized inpatient care, specifically for psychiatric, rehabilitation, and obstetric services . To enhance financial viability and service offerings, the bill introduces a 5 percent add-on payment for diagnostic laboratory tests furnished by REHs, recognizing their higher operational costs. It also grants REHs the flexibility to utilize swing beds , enabling them to provide extended care services akin to skilled nursing facilities. The legislation ensures that REHs converting back to Critical Access Hospitals can regain their "necessary provider" status, provided they held it previously. Additionally, REHs are made eligible for Small Rural Hospital Improvement Program grants and are deemed Health Professional Shortage Areas for National Health Service Corps site eligibility, attracting healthcare professionals. Finally, the bill mandates the inclusion of rural emergency hospital services, including distinct part nursing facility services, under Medicaid coverage .