Catastrophic Specialty Hospital Act of 2025

Allows certain long-term care hospitals to be designated and paid as "catastrophic specialty hospitals," so they receive Medicare payment outside the normal long-term care hospital payment system for specified cost reporting periods. The Secretary of Health and Human Services must set and apply detailed criteria (volume, case mix, research activity, out-of-state admissions, and others), grant designations for three years, and provide a process for redesignation or expiration.