U.S. Sens Tommy Tuberville and Katie Britt introduced legislation Tuesday aimed at helping struggling rural hospitals preserve emergency services and gain greater flexibility under a federal Medicare designation.
Tuberville (R-Auburn) and Britt (R-Montgomery) joined U.S. Sen. Jerry Moran (R-Kan.) in introducing the Rural Emergency Hospital Designation Improvement Act, known as the REH 2.0 Act.
“Fifty-five of Alabama’s 67 counties are rural, and our rural hospitals provide a lifeline to Alabamians who live further away from larger medical facilities,” Tuberville said.
“I’m proud to join the REH Designation Improvement Act to ensure location doesn’t prevent Alabamians from being able to access quality care in times of emergency.”
Britt echoed those concerns, pointing to the toll hospital closures are taking across the state.
“Hospitals in rural communities across Alabama and the nation are increasingly closing their doors, making it harder for Americans to access quality healthcare,” Britt said. “This legislation will help preserve local hospitals and prevent them from closing altogether by providing greater flexibility under the Rural Emergency Hospital program. Strengthening this program will help ensure rural families can continue receiving essential, and potentially lifesaving, care close to home, which is why I’m proud to support it.”
The Rural Emergency Hospital designation was established in 2023 as an alternative for small rural hospitals facing closure. Facilities that convert generally stop providing inpatient care but continue offering emergency, observation and outpatient services while receiving enhanced Medicare payments.
The REH 2.0 Act would expand which facilities can qualify and make several changes to the program.
Under the bill, certain rural hospitals that closed between 2015 and 2020 could reopen and apply for the designation. The Department of Health and Human Services would also be directed to establish a waiver program for facilities that operate similarly to a Rural Emergency Hospital but do not currently qualify.
The legislation would allow Rural Emergency Hospitals to operate inpatient psychiatric and obstetric units, provide limited inpatient rehabilitation services and receive additional federal funding for laboratory services.
It would also clarify their eligibility for rural hospital improvement grants, permit direct transfers to skilled nursing facilities and allow certain hospitals to return to Critical Access Hospital status if their circumstances change.
The proposal comes as rural Alabama hospitals continue to face staffing, reimbursement and financial challenges. Alabama currently has three Rural Emergency Hospitals, and a Greenville facility announced last year that it would convert to the designation, ending inpatient care and eliminating approximately 90 positions in an effort to remain financially viable.
In May of this year, U.S. Rep. Aderholt secured federal grants covering nearly 30 rural hospitals around the state.
Sawyer Knowles is a state and political reporter for Yellowhammer News. You may contact him at [email protected].
