Bipartisan bill to extend Rural Community Hospital Demonstration program introduced

Rep. Jill Tokuda (D-Hawaii) and bipartisan co-sponsors introduced the Rural Community Hospital Demonstration Revitalization Act to extend the federal program for an additional five years. The demonstration provides cost-based reimbursement for inpatient services at small rural hospitals, a financial lifeline for facilities with fewer than 51 beds. The current program is set to expire, and this extension would preserve enhanced Medicare payments that help stabilize rural emergency departments. Rural hospital closures accelerated after federal pandemic relief funds dried up. The bill must clear the House Energy and Commerce Committee before a floor vote. Monitor the committee calendar for HR 1227; its progress signals whether rural payment buffers will survive the 2026 session.