Rural Hospital Closure Relief Act of 2025
- Bill Number
- S. 502
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Health
- Status
- Introduced
- Latest Action
- 2025-02-10: Read twice and referred to the Committee on Finance. (text: CR S820-821)
- Last Updated
- 2026-01-10T07:28:10Z
Official Summary
Rural Hospital Closure Relief Act of 2025
This bill temporarily allows additional hospitals to qualify as critical access hospitals (CAHs) that receive special payment under Medicare.
Currently, in order to qualify as a CAH under Medicare, a hospital must either (1) be located more than 35 miles (or 15 miles in mountainous regions or areas with only secondary roads) from another hospital, or (2) have been certified prior to January 1, 2006, by the state as a necessary provider of services in the area.
The bill allows a hospital to also qualify if the hospital is a small, rural hospital that (1) serves a health professional shortage area, or a high number of low-income individuals or Medicare beneficiaries; (2) has experienced financial losses for two consecutive years; and (3) attests to having a strategic plan to address financial solvency and to committing to provide a service that is in high demand in the hospital's service area. This authority expires nine years after the bill's enactment.
The Government Accountability Office must study the effects of the bill's implementation. In addition, the Medicare Payment Advisory Commission must study and recommend payment systems for rural hospitals under Medicare. The Centers for Medicare & Medicaid Services must subsequently establish a mechanism and issue guidance on how newly designated CAHs may transition to different payment models under Medicare, including any new payment models recommended by the commission.
Sponsor
Sen. Durbin, Richard J. [D-IL]
Cosponsors (7)
Sen. Lankford, James [R-OK], Sen. Smith, Tina [D-MN], Sen. Hyde-Smith, Cindy [R-MS], Sen. Capito, Shelley Moore [R-WV], Sen. Lujan, Ben Ray [D-NM], Sen. Wicker, Roger F. [R-MS], Sen. Schiff, Adam B. [D-CA]
Recent Actions
- 2025-02-10: Read twice and referred to the Committee on Finance. (text: CR S820-821)
- 2025-02-10: Introduced in Senate
Bill Versions
- Rural Hospital Closure Relief Act of 2025 — issued 2025-02-10 — PDF (14 pages)