Rural Hospital Stabilization Act

Health

house

senate

president

Introduced on May 6, 2024 by Randy Feenstra

Legislation Details

Establishes the Rural Hospital Stabilization Pilot Program under the Social Security Act.
Aims to provide grants to rural hospitals to ensure local access to healthcare services.
Grants will be awarded starting January 1, 2026, by the Secretary through the Office of Rural Health Policy.
Eligible recipients include hospitals, critical access hospitals, rural emergency hospitals, and experienced technical assistance providers.
Prioritization for grants will consider factors such as:
- Average daily census of the hospital.
- Distance to the nearest hospital.
- Financial circumstances based on Medicare cost reports.
- Risk of hospital closure or reduction in services.
Grant funds can be used for:
- Sustaining, enhancing, or expanding services.
- Minor renovations, training, staff recruitment, and equipment acquisition.
Technical assistance providers can use funds to help rural hospitals apply for grants and manage awarded funds.
The Secretary must submit an initial report to Congress by January 1, 2029, detailing grant recipients and their use of funds.
A subsequent report is required two years after the initial report, providing updates on the grants.
Authorizes $20 million annually from the Federal Hospital Insurance Trust Fund for fiscal years 2026 through 2029 for grant distribution.

Last updated 12/28/2024

Establishes the Rural Hospital Stabilization Pilot Program under the Social Security Act.
Aims to provide grants to rural hospitals to ensure local access to healthcare services.
Grants will be awarded starting January 1, 2026, by the Secretary through the Office of Rural Health Policy.
Eligible recipients include hospitals, critical access hospitals, rural emergency hospitals, and experienced technical assistance providers.
Prioritization for grants will consider factors such as:
- Average daily census of the hospital.
- Distance to the nearest hospital.
- Financial circumstances based on Medicare cost reports.
- Risk of hospital closure or reduction in services.
Grant funds can be used for:
- Sustaining, enhancing, or expanding services.
- Minor renovations, training, staff recruitment, and equipment acquisition.
Technical assistance providers can use funds to help rural hospitals apply for grants and manage awarded funds.
The Secretary must submit an initial report to Congress by January 1, 2029, detailing grant recipients and their use of funds.
A subsequent report is required two years after the initial report, providing updates on the grants.
Authorizes $20 million annually from the Federal Hospital Insurance Trust Fund for fiscal years 2026 through 2029 for grant distribution.