Bipartisan Senate Bill Aims to Shore Up Rural Hospitals as 2020 Law Faces Test

Sens. Jerry Moran and Shelley Moore Capito introduced the Rural Hospital Assistance Act to create a new Medicare designation and payment model for 'Rural Emergency Hospitals' with inpatient beds of 20 or fewer. The bill comes as the 2020 law creating the REH designation faces its first real-world test; the model offers higher outpatient payments but requires facilities to give up inpatient services. With over 600 rural hospitals at financial risk, this policy shift could accelerate service-line closures in rural communities, redirecting patient flow and referrals. Track CMS-2026-XXXX for the proposed rule expected in late 2026.