Rural Hospital Closure Relief Act of 2025
Summary
The Rural Hospital Closure Relief Act of 2025 aims to support rural hospitals by amending Title XVIII of the Social Security Act. It restores state authority to waive the 35-mile rule for designating critical access hospitals under the Medicare program, providing flexibility for certain facilities. The Act also includes provisions for studies and reports on payment systems for rural hospitals and adjusts Medicare requirements for critical access hospitals in US territories.
Expected Effects
This act could prevent the closure of some rural hospitals by allowing states to designate more facilities as critical access hospitals, increasing Medicare funding to those facilities. It also mandates studies and reports to improve payment systems for rural hospitals. A sunset provision is included, requiring a transition to alternative payment models after 9 years.
Potential Benefits
- Preservation of healthcare access in rural areas by preventing hospital closures.
- Increased Medicare funding for eligible rural hospitals.
- Flexibility for states to address specific local healthcare needs.
- Studies and reports to improve the financial sustainability of rural hospitals.
- Adjusted Medicare requirements for US territories, addressing their unique needs.
Potential Disadvantages
- Potential for increased Medicare spending.
- Possible inconsistencies in the application of waivers across different states.
- Administrative burden for states and hospitals to comply with new regulations.
- The sunset provision creates uncertainty for hospitals after 9 years.
- Limited number of facilities that can be designated as critical access hospitals.
Most Disadvantaged Areas:
Constitutional Alignment
The Act appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to tax and spend for the general welfare, and this act aims to improve healthcare access in rural areas. The Act does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).