H.R. 10293 — Rural Emergency Hospital Designation Improvement Act

This section expands eligibility for conversion to a rural emergency hospital by requiring a facility to have been a critical access hospital or rural hospital at any point during the period beginning January 1, 2015, and ending on the applicable statutory date (from as of that date). It directs the Secretary to issue regulations within one year waiving certain requirements for facilities that operate similarly to rural emergency hospitals.

This section requires certain facilities to maintain or include a distinct part unit licensed as an inpatient psychiatric unit for behavioral health patients, a distinct part unit licensed as an inpatient rehabilitation facility, and a distinct part unit licensed as an obstetric wing, labor and delivery unit, or obstetric emergency department.

This section increases payments by 5 percent for clinical diagnostic laboratory tests and other diagnostic laboratory tests that are not covered outpatient department services when furnished by a rural emergency hospital on or after January 1, 2027. Copayment amounts are calculated as if the 5 percent increase had not occurred.

This section authorizes rural emergency hospitals to enter into agreements with the Secretary under which their facilities may furnish extended care services of the type provided by skilled nursing facilities. Payment for such services is based on reasonable cost as determined under section 1883(a)(2)(B), applied by substituting “rural emergency hospital” for “hospital” and “inpatient hospital.”

This section directs the Secretary of Health and Human Services to issue regulations within one year of enactment allowing a rural emergency hospital that reverts to critical access hospital designation to regain necessary provider status, but only if the facility held that status before its conversion.

This section directs the Secretary of Health and Human Services to issue regulations deeming rural emergency hospitals to be health professional shortage areas. The change expands National Health Service Corps site eligibility to these facilities, which provide emergency and outpatient services in rural areas.

This section expands eligibility for small rural hospital improvement program grants to rural emergency hospitals (as defined in section 1861(kkk)(2)), in addition to critical access hospitals under paragraph (1)(D) and small rural hospitals under paragraph (3)(A).

This section expands the Medicaid definition of medical assistance to cover rural emergency hospital services licensed or approved by the state, and to cover services provided in a nursing facility that is a distinct part unit of a rural emergency hospital. The changes apply to medical assistance furnished on or after the date of enactment, with a delay until the first quarter after the next regular state legislative session for states requiring new legislation.