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<dc:title>119 HR 3684 IH: Save America’s Rural Hospitals Act</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2025-06-03</dc:date>
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<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<distribution-code display="yes">I</distribution-code><congress display="yes">119th CONGRESS</congress><session display="yes">1st Session</session><legis-num display="yes">H. R. 3684</legis-num><current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber><action display="yes"><action-date date="20250603">June 3, 2025</action-date><action-desc><sponsor name-id="G000546">Mr. Graves</sponsor> (for himself and <cosponsor name-id="B001315">Ms. Budzinski</cosponsor>) introduced the following bill; which was referred to the <committee-name committee-id="HWM00">Committee on Ways and Means</committee-name>, and in addition to the Committees on <committee-name committee-id="HIF00">Energy and Commerce</committee-name>, and <committee-name committee-id="HBU00">the Budget</committee-name>, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned</action-desc></action><legis-type>A BILL</legis-type><official-title display="yes">To amend titles XVIII and XIX of the Social Security Act to provide for enhanced payments to rural health care providers under the Medicare and Medicaid programs, and for other purposes.</official-title></form><legis-body id="H6AE4A9418EAD488784E8A83D15C369E2" style="OLC"><section id="H3191D6F555894CDFB8AB1AD96793388C" section-type="section-one"><enum>1.</enum><header>Short title; table of contents</header><subsection id="HEB16C851F01243D0BEF6D9F5F35B11A1"><enum>(a)</enum><header>Short title</header><text display-inline="yes-display-inline">This Act may be cited as the <quote><short-title>Save America’s Rural Hospitals Act</short-title></quote>.</text></subsection><subsection id="HEFB1E84DAF3744C680F4CA2B4440EC92"><enum>(b)</enum><header>Findings</header><text display-inline="yes-display-inline">Congress finds the following:</text><paragraph id="H21A13670139340E4B9C8241225D41206"><enum>(1)</enum><text>More than 60,000,000 individuals in rural areas of the United States rely on rural hospitals and other providers as critical access points to health care.</text></paragraph><paragraph id="H149F85FE6CB649DFA42E83762C170DA0"><enum>(2)</enum><text>Access to health care is essential to communities that Americans living in rural areas call home.</text></paragraph><paragraph id="H0035B149942F40089A243ACC48288B4D"><enum>(3)</enum><text>Americans living in rural areas are older, poorer, and sicker than Americans living in urban areas.</text></paragraph><paragraph id="H0D16BFF3708D48BE8664B9DD4E94217B"><enum>(4)</enum><text display-inline="yes-display-inline">As of May 1, 2025, 151 rural hospitals have closed in the United States, according to the University of North Carolina’s Cecil G. Sheps Center for Health Services Research, and the rate of these closures is increasing.</text></paragraph><paragraph id="H49088D7F5AFD4B48994560F7A01F8A46"><enum>(5)</enum><text display-inline="yes-display-inline">Four hundred and thirty-two hospitals are operating at margins similar to those that have closed over the past decade. Of those, 216 are considered most vulnerable to closure.</text></paragraph><paragraph id="H2A8498CE077146AEAC783DCED7300627"><enum>(6)</enum><text>Rural Medicare beneficiaries already face a number of challenges when trying to access health care services close to home, including the weather, geography, and cultural, social, and language barriers.</text></paragraph><paragraph id="HDD44E483EB514B059ED40DA28FE3BC73"><enum>(7)</enum><text display-inline="yes-display-inline">Approximately sixty percent of all primary care health professional shortage areas are located in rural areas.</text></paragraph><paragraph id="HFABC4F4850284036BAF4443CEED91737"><enum>(8)</enum><text>Seniors living in rural areas are forced to travel significant distances for care.</text></paragraph><paragraph id="H82F49A54285F40AE88235B119D844542"><enum>(9)</enum><text>On average, trauma victims in rural areas must travel twice as far as victims in urban areas to the closest hospital, and, as a result, 60 percent of trauma deaths occur in rural areas, even though only 20 percent of Americans live in rural areas.</text></paragraph><paragraph id="HC63C682FF1C447F28877BE6E391355BC"><enum>(10)</enum><text display-inline="yes-display-inline">With the 432 hospitals on the brink of closure, millions of Americans living in rural areas are on the brink of losing access to the closest emergency room.</text></paragraph></subsection><subsection id="H8174B9AA635E4530A3787F64C2DE3016"><enum>(c)</enum><header>Table of contents</header><text display-inline="yes-display-inline">The table of contents of this Act is as follows:</text><toc container-level="legis-body-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"><toc-entry idref="H3191D6F555894CDFB8AB1AD96793388C" level="section">Sec. 1. Short title; table of contents.</toc-entry><toc-entry idref="HB452B164009F4C3E88B107F132C03875" level="title">Title I—Rural provider payment stabilization</toc-entry><toc-entry idref="H35A02F839A08429487D391CDD3F09F7F" level="subtitle">Subtitle A—Rural hospitals</toc-entry><toc-entry idref="HE48D4A7AD70340889B3660DAA796D7CE" level="section">Sec. 101. Eliminating Medicare sequestration for rural hospitals.</toc-entry><toc-entry idref="H3074FFED60584E48A63A4DE00F4B2FC6" level="section">Sec. 102. Reversing cuts to reimbursement of bad debt for critical access hospitals (CAHs) and rural hospitals.</toc-entry><toc-entry idref="H5275C37ABBF14762B77EB1E6FB5C15F0" level="section">Sec. 103. Permanently extending payment levels for low-volume hospitals and Medicare-dependent hospitals (MDHs).</toc-entry><toc-entry idref="H5FBA53EC436B48B3B39ED745A1C89946" level="section">Sec. 104. Extending disproportionate share payments for sole community hospitals and medicare-dependent hospitals.</toc-entry><toc-entry idref="HB6B306010CDD4F29871E2FA7CEFC6823" level="section">Sec. 105. Rebasing target amounts for Medicare-dependent hospitals and sole community hospitals.</toc-entry><toc-entry idref="HC48C6F9FD4AE492DBF6666ABD699D1D0" level="section">Sec. 106. Implementing area wage index adjustments.</toc-entry><toc-entry idref="H573A4BAE6572443795472A8F7026AAE3" level="subtitle">Subtitle B—Other rural providers</toc-entry><toc-entry idref="H26873B35E01744EF8E167942518E035E" level="section">Sec. 111. Making permanent increased Medicare payments for ground ambulance services in rural areas.</toc-entry><toc-entry idref="H12FFA7AE05E94B5B95E5BAA82A30E5B8" level="section">Sec. 112. Permanently extending Medicare telehealth service enhancements for federally qualified health centers and rural health clinics.</toc-entry><toc-entry idref="H6981BFCBE4604187AFAA5D0253B2E84E" level="section">Sec. 113. Restoring State authority to waive the 35-mile rule for certain Medicare critical access hospital designations.</toc-entry><toc-entry idref="H2554B74AFC904FA68C88CC1E1D6597AC" level="title">Title II—Rural Medicare beneficiary equity</toc-entry><toc-entry idref="H287DF98C8F43432EACD97CF6B6FF21DB" level="section">Sec. 201. Equalizing beneficiary copayments for services furnished by CAHs.</toc-entry><toc-entry idref="H201BE049384748EFB0F36696C3D7D5B5" level="title">Title III—Regulatory relief</toc-entry><toc-entry idref="HF107D815262943889279E0686B142AA0" level="section">Sec. 301. Eliminating 96-hour requirements with respect to inpatient CAH services.</toc-entry><toc-entry idref="HD23ACB4F78CE493EA8806B53A36050A9" level="section">Sec. 302. Eliminating hospitalization requirement for extended care services furnished by certain hospitals.</toc-entry><toc-entry idref="HF82E41752A764C9A8EFE1ED506C3866A" level="title">Title IV—Future of rural health care</toc-entry><toc-entry idref="H2B93AB7700DB4BC392E9CE7A3829BDCB" level="section">Sec. 401. Medicare rural hospital flexibility program grants.</toc-entry></toc></subsection></section><title id="HB452B164009F4C3E88B107F132C03875"><enum>I</enum><header>Rural provider payment stabilization</header><subtitle id="H35A02F839A08429487D391CDD3F09F7F"><enum>A</enum><header>Rural hospitals</header><section id="HE48D4A7AD70340889B3660DAA796D7CE"><enum>101.</enum><header>Eliminating Medicare sequestration for rural hospitals</header><subsection id="HAE4DE042CA144AF2B8134065C0915796"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 256(d)(7) of the Balanced Budget and Emergency Deficit Control Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/2/906">2 U.S.C. 906(d)(7)</external-xref>) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="HC5416D97789B4675A0C0ADFE49B73AC9" style="OLC"><subparagraph id="H7C00D6FB2F974F8593F262D35215842E"><enum>(D)</enum><header>Rural hospitals</header><text display-inline="yes-display-inline">Payments under part A or part B of title XVIII of the Social Security Act with respect to items and services furnished by a critical access hospital (as defined in section 1861(mm)(1) of such Act), a sole community hospital (as defined in section 1886(d)(5)(D)(iii) of such Act), a medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv) of such Act), or a subsection (d) hospital (as defined in section 1886(d)(1)(B) of such Act) located in a rural area (as defined in section 1886(d)(2)(D) of such Act).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="H73B414F5CF1C4B9A9590884E79B9D935"><enum>(b)</enum><header>Applicability</header><text display-inline="yes-display-inline">The amendment made by this section applies with respect to orders of sequestration effective on or after the date that is 60 days after the date of the enactment of this Act.</text></subsection></section><section id="H3074FFED60584E48A63A4DE00F4B2FC6" section-type="subsequent-section"><enum>102.</enum><header>Reversing cuts to reimbursement of bad debt for critical access hospitals (CAHs) and rural hospitals</header><subsection commented="no" id="HC61734C1D1804E41B86240E738E1AAC6"><enum>(a)</enum><header>Rural hospitals</header><text display-inline="yes-display-inline">Section 1861(v)(1)(T)(v) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395x">42 U.S.C. 1395x(v)(1)(T)(v)</external-xref>) is amended by inserting before the period at the end the following: <quote>or, in the case of a hospital located in a rural area, by 15 percent of such amount otherwise allowable</quote>.</text></subsection><subsection commented="no" id="H04AFFA4B0DD445689C338062D33CCF1D"><enum>(b)</enum><header>CAHs</header><text display-inline="yes-display-inline">Section 1861(v)(1)(W)(ii) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395x">42 U.S.C. 1395x(v)(1)(W)(ii)</external-xref>) is amended by inserting <quote>, a critical access hospital</quote> after <quote>or (V)</quote>.</text></subsection><subsection id="HF85135C07B69491DAA768C39E65197A3"><enum>(c)</enum><header>Applicability</header><text>The amendments made by this section apply with respect to cost reporting periods beginning more than 60 days after the date of the enactment of this Act.</text></subsection></section><section id="H5275C37ABBF14762B77EB1E6FB5C15F0" commented="no"><enum>103.</enum><header>Permanently extending payment levels for low-volume hospitals and Medicare-dependent hospitals (MDHs)</header><subsection id="H4CC58250429B41D58E77FA8FE81A76FE" commented="no"><enum>(a)</enum><header>Extension of increased payments for MDHs</header><paragraph id="HFEC9F33E86C24C10AAB243373F3F60BE" commented="no"><enum>(1)</enum><header>Extension of payment methodology</header><text display-inline="yes-display-inline">Section 1886(d)(5)(G) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(d)(5)(G)</external-xref>) is amended—</text><subparagraph id="H270A9734C11A40159432F4CC69827E54" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (i), by striking <quote>, and before October 1, 2025</quote>; and</text></subparagraph><subparagraph id="H4A511FEA164B44799F2A0709B71E2C25" commented="no"><enum>(B)</enum><text>in clause (ii)(II), by striking <quote>, and before October 1, 2025</quote>.</text></subparagraph></paragraph><paragraph id="HBB09A98DA7514346896F1BD1DA7E3C85" commented="no"><enum>(2)</enum><header>Conforming amendments</header><subparagraph id="H17B3B5FFE67C44259338E7766035D102" commented="no"><enum>(A)</enum><header>Extension of target amount</header><text display-inline="yes-display-inline">Section 1886(b)(3)(D) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(b)(3)(D)</external-xref>) is amended—</text><clause id="HDF4F4772927F4BF7853A7298AEF2D4FD" commented="no"><enum>(i)</enum><text>in the matter preceding clause (i), by striking <quote>, and before October 1, 2025</quote>; and</text></clause><clause id="H97F948503ADB494FAE8B349E9C1E7521" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">in clause (iv), by striking <quote>through fiscal year 2025</quote> and inserting <quote>or a subsequent fiscal year</quote>.</text></clause></subparagraph><subparagraph commented="no" id="H70A8354307944C548FC99E778FF13F8D"><enum>(B)</enum><header>Extending the period during which hospitals can decline reclassification as urban</header><text display-inline="yes-display-inline">Section 13501(e)(2) of the Omnibus Budget Reconciliation Act of 1993 (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww</external-xref> note) is amended by striking <quote>through fiscal year 2025</quote> and inserting <quote>, or a subsequent fiscal year</quote>.</text></subparagraph></paragraph></subsection><subsection id="HFD98ABC5430F4BF7AE6910D939D94CD7" commented="no"><enum>(b)</enum><header>Extension of increased payments for low-Volume hospitals</header><text display-inline="yes-display-inline">Section 1886(d)(12) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(d)(12)</external-xref>) is amended—</text><paragraph id="HD34B7788737A465393650843D1BD2324" commented="no"><enum>(1)</enum><text>in subparagraph (B)—</text><subparagraph id="H4A70B6C0F9294348A8FCCE65859ECE3D" commented="no"><enum>(A)</enum><text>in the subparagraph heading, by inserting <quote><header-in-text level="subparagraph" style="OLC">for fiscal years 2005 through 2010</header-in-text></quote> after <quote><header-in-text level="subparagraph" style="OLC">increase</header-in-text></quote>; and</text></subparagraph><subparagraph id="H1042A77DFEDF4EDB8E05DDADDB292A70" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">in the matter preceding clause (i), by striking <quote>and for discharges occurring in fiscal year 2026 and subsequent fiscal years</quote>;</text></subparagraph></paragraph><paragraph commented="no" id="HD5BC3D17176E4E6B9E8FE13E56990325"><enum>(2)</enum><text>in subparagraph (C)(i)—</text><subparagraph id="H7681ABD1C8B2426CBB0C127092F55873" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">in the matter preceding subclause (I), by striking <quote>through 2025</quote> and inserting <quote>and each subsequent fiscal year</quote>;</text></subparagraph><subparagraph id="HAB44BCAE4BD24F6B8965FBA4A239750C" commented="no"><enum>(B)</enum><text>in subclause (II), by adding <quote>and</quote> at the end;</text></subparagraph><subparagraph id="HB7C5A27CA4CE407DA6585C672B452115" commented="no"><enum>(C)</enum><text>in subclause (III)—</text><clause id="HB4B31B9631454C5A88D0EA7CC549E678" commented="no"><enum>(i)</enum><text>by striking <quote>fiscal years 2019 through 2025</quote> and inserting <quote>fiscal year 2019 and each subsequent fiscal year</quote>; and</text></clause><clause id="H867F0BE83652467B8DA6184A5902AEC3" commented="no"><enum>(ii)</enum><text>by striking <quote>; and</quote> and inserting a period; and</text></clause></subparagraph><subparagraph id="HD7DCCC4725EC47B0AE3A1E1380371F3C" commented="no"><enum>(D)</enum><text>by striking subclause (IV); and</text></subparagraph></paragraph><paragraph commented="no" id="HF3AD73163EDF4B7FA9EB8DF4EAB42C23"><enum>(3)</enum><text display-inline="yes-display-inline">in subparagraph (D)—</text><subparagraph commented="no" id="H19E171C17AFF420AA8AA26C4E49D7549"><enum>(A)</enum><text>by amending the heading to read as follows: <quote><header-in-text level="subparagraph" style="OLC">Permanent Applicable percentage increase</header-in-text></quote>;</text></subparagraph><subparagraph id="HAD7B0052FB8D451DB5A5A2EAD2469A6F" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">in the matter preceding clause (i), by striking <quote>in fiscal years 2011 through 2025</quote> and inserting <quote>in fiscal year 2011 or a subsequent fiscal year</quote>; and</text></subparagraph><subparagraph commented="no" id="HF2734A2C619D43EDB014A192D87CABD9"><enum>(C)</enum><text display-inline="yes-display-inline">in clause (ii), by striking <quote>each of fiscal years 2019 through 2025</quote> and inserting <quote>fiscal year 2019 and each subsequent fiscal year</quote>.</text></subparagraph></paragraph></subsection></section><section id="H5FBA53EC436B48B3B39ED745A1C89946" commented="no"><enum>104.</enum><header>Extending disproportionate share payments for sole community hospitals and medicare-dependent hospitals</header><text display-inline="no-display-inline">Section 1886 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww</external-xref>) is amended—</text><paragraph id="HF833D39893CC4324A296FEACB4E35B20"><enum>(1)</enum><text>in subsection (d)(5)(F)(i), by inserting <quote>, including, with respect to discharges occurring in fiscal year 2026 and each subsequent fiscal year, a subsection (d) hospitals that is a sole community hospitals paid the amount described in subparagraph (D)(i)(I) or a medicare-dependent, small rural hospital paid the amount described in subparagraph (G),</quote> after <quote>subsection (d) hospital</quote>; and</text></paragraph><paragraph id="HEDCB6A35232642BCB01E024919FA3C21"><enum>(2)</enum><text>in subsection (r)(2), by inserting <quote>(including, with respect to fiscal year 2026 and each subsequent fiscal year, subsection (d) hospitals that are sole community hospitals or medicare-dependent, small rural hospitals described in subsection (d)(5)(F)(i))</quote> after <quote>such subsection (d) hospitals</quote>.</text></paragraph></section><section id="HB6B306010CDD4F29871E2FA7CEFC6823" commented="no"><enum>105.</enum><header>Rebasing target amounts for Medicare-dependent hospitals and sole community hospitals</header><text display-inline="no-display-inline">Section 1886(b)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(b)(3)</external-xref>) is amended—</text><paragraph id="H275149BAAE284C26BF41D2D3E11C5329" commented="no"><enum>(1)</enum><text>in subparagraph (K)(i)—</text><subparagraph id="H3AC6A8F027ED4BA1BE2D55349989D53B" commented="no"><enum>(A)</enum><text>in subclause (I), by inserting <quote>(or, with respect to discharges occurring on or after October 1, 2025, the 12-month cost reporting period beginning during fiscal year 2024)</quote> after <quote>fiscal year 2002</quote>; and</text></subparagraph><subparagraph id="H58C71AA351F94F3386C182D9799598F5" commented="no"><enum>(B)</enum><text>in subclause (II), by inserting <quote>(or, with respect to discharges occurring on or after October 1, 2025, the first cost reporting period beginning on or after such date)</quote> after <quote>October 1, 2006</quote>; and</text></subparagraph></paragraph><paragraph id="HCD6372FB535046188AED72A6BAD289C8" commented="no"><enum>(2)</enum><text>in subparagraph (L)(ii)—</text><subparagraph id="HF406CDF719EF4423B155EC2BEB115F5C" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">in subclause (I), by inserting <quote>(or, with respect to discharges occurring on or after October 1, 2025, the 12-month cost reporting period beginning during fiscal year 2024)</quote> after <quote>fiscal year 2006</quote>; and</text></subparagraph><subparagraph id="H42B105F077DC4E7F93DBD3A243C0961F" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">in subclause (II), by inserting <quote>(or, with respect to discharges occurring on or after October 1, 2025, the first cost reporting period beginning on or after such date)</quote> after <quote>January 1, 2009</quote>.</text></subparagraph></paragraph></section><section id="HC48C6F9FD4AE492DBF6666ABD699D1D0" commented="no"><enum>106.</enum><header>Implementing area wage index adjustments</header><subsection id="H8C4550857E26496E8D0444A73ACD9B02" commented="no"><enum>(a)</enum><header>Codification of low-Wage index hospital policy</header><text display-inline="yes-display-inline">Section 1886(d)(3)(E) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(d)(3)(E)</external-xref>) is amended by adding at the end the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H5D4662B2F14F41D2BE27D5F8E7AA2316"><clause id="HC93C2056EDFD402C97DBD3C2B9F22C94" commented="no" indent="up1"><enum>(v)</enum><header>Low-wage hospitals</header><text>For discharges occurring on or after October 1, 2025, the area wage index applicable under this subparagraph for a fiscal year to a hospital with an area wage index below the 25th percentile area wage index shall be increased by ½ of the difference between the otherwise applicable final area wage index for such fiscal year for such hospital and the 25th percentile area wage index for such fiscal year across all hospitals. Pursuant to the fourth sentence of clause (i), the preceding sentence shall be applied in a budget neutral manner.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H5D995CBA480744FB85C5CE496A28FEF9" commented="no"><enum>(b)</enum><header>Area wage adjustment for hospitals not located in frontier States</header><paragraph id="H222036CBEA2F4888A8EC71D1F81C4D4F" commented="no"><enum>(1)</enum><header>Hospital inpatient services</header><text>Section 1886(d)(3)(E) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(d)(3)(E)</external-xref>), as amended by subsection (a), is further amended by adding at the end the following new clause:</text><quoted-block style="OLC" id="HF3AAB204CF9E481B9F3B1751A0869EA2" display-inline="no-display-inline"><clause id="H29596A5CE8BA4FABBAF4CE89B31A3CAD" indent="up1"><enum>(vi)</enum><header>Floor on area wage index for hospitals in certain other areas</header><subclause id="H882078D418DB4D579387DB702C65B300"><enum>(I)</enum><header>In general</header><text>For discharges occurring on or after October 1, 2025, the area wage index applicable under this subparagraph to any hospital which is not located in a frontier State (as defined in clause (iii)(II)) may not be less than 0.85.</text></subclause><subclause id="H509948E4A8DA4354BEB7823D11212940"><enum>(II)</enum><header>Ensuring budget neutrality</header><text>In order to ensure that the aggregate payments made under this subsection for a fiscal year (beginning with fiscal year 2026) are not greater than the aggregate payments that would have been made under this subsection for such fiscal year without the application of subclause (I), as estimated by the Secretary, the Secretary shall establish pursuant to rulemaking a maximum area wage index to apply under this subparagraph to any hospital which is not located in a frontier State (as defined in clause (iii)(II)).</text></subclause><subclause id="H3679665AA1604894A887DDF581F3960B"><enum>(III)</enum><header>No impact for hospitals with an area wage index between the floor and the maximum index</header><text>Subclauses (I) and (II) shall have no effect on the area wage index applicable in a fiscal year to a hospital with an area wage index that is greater than the floor under subclause (I) but less than the maximum area wage index established under subclause (II) for the fiscal year.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HAB48A26D1ECF44B1A7D1A1EB6769D193" commented="no"><enum>(2)</enum><header>Hospital outpatient department services</header><text>Section 1833(t) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(t)</external-xref>), is amended—</text><subparagraph id="H549C1078276D4FCD940304D745B18DE4" commented="no"><enum>(A)</enum><text>in paragraph (2)(D), by striking <quote>paragraph (19)</quote> and inserting <quote>paragraphs (19) and (23)</quote>; and</text></subparagraph><subparagraph id="HBA8E48FE1CBE4C0A82F2C5996C8DBCE0" commented="no"><enum>(B)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H46F97CD265E94046B94F1355E10D8D21"><paragraph id="HE7AB1A76632C47A1ADBDDC39834CD2A3"><enum>(23)</enum><header>Floor on area wage adjustment factor for hospital outpatient department services in areas other than in frontier states</header><subparagraph id="H26FDD4BAF69A4BE0B21E133B64E19A24"><enum>(A)</enum><header>In general</header><text>With respect to covered OPD services furnished on or after January 1, 2026, the area wage adjustment factor applicable under the payment system established under this subsection to any hospital outpatient department which is not located in a frontier State (as defined in section 1886(d)(3)(E)(iii)(II)) may not be less than 0.85.</text></subparagraph><subparagraph id="HE0583A84021A4609BFAE60E1E82C9C4C"><enum>(B)</enum><header>Ensuring budget neutrality</header><text>In order to ensure that the aggregate payments made under this subsection for a year (beginning with 2026) are not greater than the aggregate payments that would have been made under this subsection for such year without the application of subparagraph (A), as estimated by the Secretary, the Secretary shall establish pursuant to rulemaking a maximum area wage adjustment factor to apply under the payment system established under this subsection to any hospital outpatient department which is not located in a frontier State (as defined in clause (iii)(II)).</text></subparagraph><subparagraph id="H2F0405AB74AF438DA33DE344B25BA51E"><enum>(C)</enum><header>No impact for hospitals with an area wage adjustment factor between the floor and the maximum factor</header><text>Subparagraphs (A) and (B) shall have no effect on the area wage adjustment factor applicable in a year to a hospital with an area wage adjustment factor that is greater than the floor under subparagraph (A) but less than the maximum area wage adjustment factor established under subparagraph (B) for the year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="HA6849261FD324C1B9DD4AB1444B5BB95" commented="no"><enum>(c)</enum><header>Conforming amendments</header><text>Section 1886(d)(3)(E) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(d)(3)(E)</external-xref>), as amended by subsections (a) and (b), is further amended—</text><paragraph id="HCAD8E96EE2E84061ABFA465138561FCD" commented="no"><enum>(1)</enum><text>in clause (i), by striking <quote>or (iv)</quote> and inserting <quote>(iv), (v), or (vi)</quote>;</text></paragraph><paragraph id="HAD9F030EDF484AA2BC29066E7560D2A3" commented="no"><enum>(2)</enum><text>in clause (iii), by adjusting the margins of such clause 2 ems to the left; and</text></paragraph><paragraph id="H58B7212000DA4C5B92924E7CE7EE14BF" commented="no"><enum>(3)</enum><text>in clause (iv), by adjusting the margins of such clause 2 ems to the left.</text></paragraph></subsection></section></subtitle><subtitle id="H573A4BAE6572443795472A8F7026AAE3"><enum>B</enum><header>Other rural providers</header><section id="H26873B35E01744EF8E167942518E035E" commented="no"><enum>111.</enum><header>Making permanent increased Medicare payments for ground ambulance services in rural areas</header><text display-inline="no-display-inline">Section 1834(l)(13) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395m">42 U.S.C. 1395m(l)(13)</external-xref>) is amended—</text><paragraph id="H14D2C7CD21324204855FDB2E6FFDD83A" commented="no"><enum>(1)</enum><text>in the paragraph heading, by striking <quote><header-in-text>Temporary increase</header-in-text></quote> and inserting <quote><header-in-text>Increase</header-in-text></quote>; and</text></paragraph><paragraph id="HDC23839C7FCF4B51921353391945A693" commented="no"><enum>(2)</enum><text>in subparagraph (A)—</text><subparagraph id="HA78AE187F4584F9AB63EE104E06B16C0" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">in the matter preceding clause (i), by striking <quote>, and before October 1, 2025</quote>; and</text></subparagraph><subparagraph id="HC1180433DF974219A4518EF6C8E8672D" commented="no"><enum>(B)</enum><text>in clause (i), by striking <quote>, and before October 1, 2025</quote>.</text></subparagraph></paragraph></section><section id="H12FFA7AE05E94B5B95E5BAA82A30E5B8" commented="no"><enum>112.</enum><header>Permanently extending Medicare telehealth service enhancements for federally qualified health centers and rural health clinics</header><text display-inline="no-display-inline">Section 1834(m)(8) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395m">42 U.S.C. 1395m(m)(8)</external-xref>) is amended—</text><paragraph id="HBB513AB06E034864A79BB361F5AE3C4A"><enum>(1)</enum><text>in subparagraph (A)—</text><subparagraph id="HFA429FD0BD3244B497BF634F528BE80E" commented="no"><enum>(A)</enum><text>in the matter preceding clause (i), by striking <quote>During the emergency period described in section 1135(g)(1)(B) and, in the case that such emergency period ends before December 31, 2024, during the period beginning on the first day after the end of such emergency period and ending on September 30, 2025</quote> and inserting <quote>Beginning on the first day of the emergency period described in section 1135(g)(1)(B)</quote>; and</text></subparagraph><subparagraph id="H95CA84C228D349A8AA082DF843988F1F" commented="no"><enum>(B)</enum><text>in clause (ii), by striking <quote>determined under subparagraph (B)</quote> and inserting <quote>, for services furnished during the period beginning on the first day of the emergency period described in section 1135(g)(1)(B) and ending on the date that is 60 days after the date of the enactment of the Save America’s Rural Hospitals Act, determined under subparagraph (B) and, for services furnished after such period, an amount equal to the amount that such center or clinic would have been paid under this title had such services been furnished without the use of a telecommunications system</quote>; and</text></subparagraph></paragraph><paragraph id="H4FA467A53559401E92C3F0EE1B122A8F" commented="no"><enum>(2)</enum><text>in subparagraph (B)—</text><subparagraph id="H3A12F7CDAEAD47B789AB585D26A7FACC" commented="no"><enum>(A)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">payment rule</header-in-text></quote> and all that follows through <quote>The Secretary shall</quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">payment rule.—</header-in-text>The Secretary shall</quote>;</text></subparagraph><subparagraph id="HD082060CE71347BF8CAB302164A5BBE4"><enum>(B)</enum><text>by striking <quote>during the periods for which subparagraph (A) applies</quote> and inserting <quote>during the period described in subparagraph (A)(ii)</quote>; and</text></subparagraph><subparagraph id="HAA741FACA8AE45D1AEFB5B341599346E" commented="no"><enum>(C)</enum><text>by redesignating clause (ii) as subparagraph (C), and adjusting the margin accordingly.</text></subparagraph></paragraph></section><section id="H6981BFCBE4604187AFAA5D0253B2E84E"><enum>113.</enum><header>Restoring State authority to waive the 35-mile rule for certain Medicare critical access hospital designations</header><subsection id="H6B109AFDF18C418E96E80FE99BF13125"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1820 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395i-4">42 U.S.C. 1395i–4</external-xref>) is amended—</text><paragraph id="HDBDB3EEA74E54A518107F8B9ABE000EF"><enum>(1)</enum><text>in subsection (c)(2)—</text><subparagraph id="H4F4B5B38D0C743509A2A9EF1E632BF1C"><enum>(A)</enum><text>in subparagraph (B)(i)—</text><clause id="H8B1AC0467ED246BABBB5752700023042"><enum>(i)</enum><text>in subclause (I), by striking at the end <quote>or</quote>;</text></clause><clause id="H5EF9A191CA994AECB28A21594C4E7176"><enum>(ii)</enum><text>in subclause (II), by inserting at the end <quote>or</quote>; and</text></clause><clause id="H03D985314864482BA9ED7B8A9A0CCF1F"><enum>(iii)</enum><text display-inline="yes-display-inline">by adding at the end the following new subclause:</text><quoted-block style="OLC" id="HE5AA53F3EBC649F89136065746F084C3" display-inline="no-display-inline"><subclause id="H497B725F3A5444A1B6A6FA8DB4AEFC0A"><enum>(III)</enum><text display-inline="yes-display-inline">subject to subparagraph (G), is a hospital described in subparagraph (F) and is certified on or after the date of the enactment of the Save America’s Rural Hospitals Act by the State as being a necessary provider of health care services to residents in the area;</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="HC60BBF1C4F074AEB8E2ED2E261CEBCD9"><enum>(B)</enum><text>by adding at the end the following new subparagraphs:</text><quoted-block style="OLC" id="H16C9E786A19344F2A12F698A66544C3F" display-inline="no-display-inline"><subparagraph id="H2378B190FF8B4738B9FAA551902B15F8"><enum>(F)</enum><header>Hospital described</header><text display-inline="yes-display-inline">For purposes of subparagraph (B)(i)(III), a hospital described in this subparagraph is a hospital that—</text><clause id="H3C372172882341E2842ED5DAD43BEFB9"><enum>(i)</enum><text>is a sole community hospital (as defined in section 1886(d)(5)(D)(iii)), a medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv)), a low-volume hospital that in 2021 receives a payment adjustment under section 1886(d)(12), a subsection (d) hospital (as defined in section 1886(d)(1)(B)) that has fewer than 50 beds, or, subject to the limitation under subparagraph (G)(i)(I), is a facility described in subparagraph (G)(ii);</text></clause><clause id="HB7720F7DB14D441EAAA73E63DB25F883"><enum>(ii)</enum><text>is located in a rural area, as defined in section 1886(d)(2)(D); </text></clause><clause id="HFFFDEB7D4B0B47E2B3BA66FE5549DF2D"><enum>(iii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H0B23D6E406F94574AB968A2037EE6EEF"><enum>(I)</enum><text>is located—</text><item id="H375EAFBC9F9D41DFB5236784A7512AB7" indent="up1"><enum>(aa)</enum><text>in a county that has a percentage of individuals with income that is below 150 percent of the poverty line that is higher than the national or statewide average in 2020; or</text></item><item id="HD781FD80FF724468ADC1D77ACA7ADFA6" indent="up1"><enum>(bb)</enum><text>in a health professional shortage area (as defined in section 332(a)(1)(A) of the Public Health Service Act); or</text></item></subclause><subclause id="H7C6DCE6312F14FF98D58032368397F2F" indent="up1"><enum>(II)</enum><text>has a percentage of inpatient days of individuals entitled to benefits under part A of this title, enrolled under part B of this title, or enrolled under a State plan under title XIX that is higher than the national or statewide average in 2019 or 2020;</text></subclause></clause><clause id="HF53BB7ADE65341D3B011E764780DCB30"><enum>(iv)</enum><text>subject to subparagraph (G)(ii)(II), has attested to the Secretary 2 consecutive years of negative operating margins preceding the date of certification described in subparagraph (B)(i)(III); and</text></clause><clause id="H775FBD27A8D9479CA129A063D361DC29"><enum>(v)</enum><text>submits to the Secretary—</text><subclause id="H3FD6436A35F44A1FB1CE3AA2CE806C22"><enum>(I)</enum><text>at such time and in such manner as the Secretary may require, an attestation outlining the good governance qualifications and strategic plan for multi-year financial solvency of the hospital; and</text></subclause><subclause id="HB904DD439F4940D0900B792B7CE361C3"><enum>(II)</enum><text display-inline="yes-display-inline">not later than 120 days after the date on which the Secretary issues final regulations pursuant to section 113(b) of the Save America’s Rural Hospitals Act, an application for certification of the facility as a critical access hospital.</text></subclause></clause></subparagraph><subparagraph id="H932B281AC2FC43A88C021B638A5B4240"><enum>(G)</enum><header>Limitation on certain designations</header><clause id="H2CC2CDDDB17A40D9B56B6C9F24834A7E"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary may not under subsection (e) certify pursuant to a certification by a State under subparagraph (B)(i)(III)—</text><subclause id="H8BF57DD5F7974F04B0B2090F608D0AC6"><enum>(I)</enum><text>more than a total of 175 facilities as critical access hospitals, of which not more than 20 percent may be facilities described in clause (ii); and</text></subclause><subclause id="H20A898ABC8304F899146527598479DE4"><enum>(II)</enum><text>within any one State, more than 10 facilities as critical access hospitals.</text></subclause></clause><clause id="H2BF591DDD3174135B3FD8C064D7B0C1B"><enum>(ii)</enum><header>Facility described</header><subclause id="H9362EADA34AA464EA19321C20CF7D673"><enum>(I)</enum><header>In general</header><text>A facility described in this clause is a facility that as of the date of enactment of this subparagraph met the criteria for designation as a critical access hospital under subparagraph (B)(i)(I).</text></subclause><subclause id="H07B8C7AB1AA34E89B594ED41CEA9CB6C"><enum>(II)</enum><header>Nonapplication of certain criteria</header><text>For purposes of subparagraph (B)(i)(III), the criteria described in subparagraph (F)(iv) shall not apply with respect to the designation of a facility described in subclause (I).</text></subclause></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H1E6C2CA10092484DAC0F3FC5121FA7E2"><enum>(2)</enum><text>in subsection (e), by inserting <quote>, subject to subsection (c)(2)(G),</quote> after <quote>The Secretary shall</quote>.</text></paragraph></subsection><subsection id="HA7A24681FDEA46F9991F6C354621D855"><enum>(b)</enum><header>Regulations</header><text>Not later than 120 days after the date of the enactment of this Act, the Secretary of Health and Human Services shall issue final regulations to carry out this section.</text></subsection><subsection id="HE8F61BE000704B19A750E78CEEFF0C42"><enum>(c)</enum><header>Clarification regarding facilities that meet distance or other certification criteria</header><text display-inline="yes-display-inline">Nothing in this section shall affect the application of criteria for designation as a critical access hospital described in subclause (I) or (II) of section 1820(c)(2)(B)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395i-4">42 U.S.C. 1395i–4(c)(2)(B)(i)</external-xref>).</text></subsection></section></subtitle></title><title id="H2554B74AFC904FA68C88CC1E1D6597AC"><enum>II</enum><header>Rural Medicare beneficiary equity</header><section id="H287DF98C8F43432EACD97CF6B6FF21DB"><enum>201.</enum><header>Equalizing beneficiary copayments for services furnished by CAHs</header><subsection id="H9E6F4BA66A584099B374854F87C4C7BD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1866(a)(2)(A) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395cc">42 U.S.C. 1395cc(a)(2)(A)</external-xref>) is amended by adding at the end the following: <quote>In the case of outpatient critical access hospital services for which payment is made under section 1834(g), clause (ii) of the first sentence shall be applied by substituting <quote>20 percent of the lesser of the actual charge or the payment basis under this part for such services if the critical access hospital were treated as a hospital</quote> for <quote>20 per centum of the reasonable charges for such items and services</quote>.</quote>.</text></subsection><subsection id="H89FA804C5B1644BB8FC8C7BD034FA7D8"><enum>(b)</enum><header>Applicability</header><text>The amendment made by this section applies with respect to services furnished during a year that begins more than 60 days after the date of the enactment of this Act.</text></subsection></section></title><title id="H201BE049384748EFB0F36696C3D7D5B5"><enum>III</enum><header>Regulatory relief</header><section id="HF107D815262943889279E0686B142AA0"><enum>301.</enum><header>Eliminating 96-hour requirements with respect to inpatient CAH services</header><subsection id="HDF914116360E40BCBC92CF158468BBC8"><enum>(a)</enum><header>Physician certification requirement</header><text display-inline="yes-display-inline">Section 1814(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395f">42 U.S.C. 1395f(a)</external-xref>) is amended—</text><paragraph id="H77C3E6C0788B4D8F819C0B56C9C32063"><enum>(1)</enum><text>in paragraph (6), by adding <quote>and</quote> at the end;</text></paragraph><paragraph id="H7AC8DFF301EB4DD5B613F0C824BC7A58"><enum>(2)</enum><text>in paragraph (7)(E), by striking <quote>; and</quote> and inserting a period; and</text></paragraph><paragraph id="H9BC39E0C609B4D45854606C19077B078"><enum>(3)</enum><text>by striking paragraph (8).</text></paragraph></subsection><subsection id="HAFB56F1310F34632B39004289F16A6BF" commented="no"><enum>(b)</enum><header>Average length of stay requirement</header><text>Section 1820(c)(2)(B)(iii) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395i-4">42 U.S.C. 1395i–4(c)(2)(B)(iii)</external-xref>) is amended by striking <quote>for providing inpatient care for a period that does not exceed, as determined on an annual, average basis, 96 hours per patient</quote>.</text></subsection><subsection id="HA7822EB43DF24E6D8FA1F8002E238870"><enum>(c)</enum><header>Applicability</header><text display-inline="yes-display-inline">The amendments made by this section apply with respect to services furnished during a year that begins more than 60 days after the date of the enactment of this Act.</text></subsection></section><section id="HD23ACB4F78CE493EA8806B53A36050A9" commented="no"><enum>302.</enum><header>Eliminating hospitalization requirement for extended care services furnished by certain hospitals</header><text display-inline="no-display-inline">Section 1812(f) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395d">42 U.S.C. 1395d(f)</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="HCC4F7D3A474542FE9416374C8CED3D03" display-inline="no-display-inline"><paragraph id="HBD81A00D12D8468CB1D59FFC5DBC2B7A" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">The Secretary shall provide for coverage under subsection (a)(2)(B) of extended care services (that are not posthospital extended care services) furnished on or after the date that is 60 days after the date of the enactment of this paragraph by a hospital described in subsection (b) of section 1883 pursuant to an agreement under such section for such a duration as the Secretary determines appropriate such that the coverage of such services for such duration does not alter the acute care nature of the benefit described in subsection (a)(2).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section></title><title id="HF82E41752A764C9A8EFE1ED506C3866A"><enum>IV</enum><header>Future of rural health care</header><section id="H2B93AB7700DB4BC392E9CE7A3829BDCB"><enum>401.</enum><header>Medicare rural hospital flexibility program grants</header><text display-inline="no-display-inline">Section 1820(g) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395i-4">42 U.S.C. 1395i–4(g)</external-xref>) is amended—</text><paragraph id="HC3D9DC6169E24DE2A6114DD6E87956A9"><enum>(1)</enum><text>in paragraph (1)—</text><subparagraph id="H7F6C42E4CD6D4527B7D2F363B0D18D3E"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="HD4C7A6B9F2DD448390A37C612A74D147"><enum>(B)</enum><text>in subparagraph (D), by striking the period at the end and inserting a semicolon; and</text></subparagraph><subparagraph id="HE1422A3338B240CF9EB02A19E3D4A3CF"><enum>(C)</enum><text>by adding at the end the following new subparagraphs:</text><quoted-block style="OLC" id="H6A7B49C45F76454EA6273CA896611D76" display-inline="no-display-inline"><subparagraph id="HB5D895D452A94017AD952F2604672A2F"><enum>(E)</enum><text>rural emergency hospitals providing support for critical access hospitals to convert to rural emergency hospitals to stabilize hospital emergency services in their communities; and</text></subparagraph><subparagraph id="H850F0EACEDA94D3784DF1B5B2105A0C1"><enum>(F)</enum><text>supporting certified rural health clinics for maintaining and building business operations, increasing financial indicators, addressing population health, transforming services, and providing linkages and services for behavioral health and substance use disorders responding to public health emergencies. </text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HABB4FDC98802467EBBFE5D3A38D85F11"><enum>(2)</enum><text>by redesignating paragraphs (3) through (7) as paragraphs (4) through (8), respectively;</text></paragraph><paragraph id="HB78F49E7D3C04DEA998E8BC83E62003A"><enum>(3)</enum><text>after paragraph (2), by inserting the following new paragraph:</text><quoted-block style="OLC" id="H355B9A2AA68B41B99FEF1D2A73D86E20" display-inline="no-display-inline"><paragraph id="HE2F8DC8BDDA845DFAD9A07CEBD9C95DA"><enum>(3)</enum><header>Activities to support carrying out FLEX grants</header><text display-inline="yes-display-inline">The Secretary may award grants or cooperative agreements to entities that submit to the Secretary applications, at such time and in such form and manner and containing such information as the Secretary specifies, for purposes of supporting States and hospitals in carrying out the activities under this subsection by providing technical assistance, data analysis, and evaluation efforts. </text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="H376B7D3413054874B0D2EC8FD94EE9B8"><enum>(4)</enum><text>in paragraph (4), as redesignated—</text><subparagraph id="HA4CB6BEB8D594520B025224F2718C5AB"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>State Offices of Rural Health on behalf of eligible hospitals and</quote> after <quote>award grants to</quote>;</text></subparagraph><subparagraph id="H7A3C060ECD524C95BA2303F95D553D2C"><enum>(B)</enum><text>by amending subparagraph (C) to read as follows:</text><quoted-block style="OLC" id="H751DC22C41D44D4C96C005AD2C327066" display-inline="no-display-inline"><subparagraph id="HF8771DF29AD2489BBC97D8CCDC5861A1"><enum>(C)</enum><header>Application</header><text>The State Office of Rural Health shall submit an application, on behalf of eligible rural hospitals, to the Secretary on or before such date and in such form and manner as the Secretary specifies.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="H721F29DEC3654AF4BB96A045238B0B3F"><enum>(C)</enum><text>by amending subparagraph (D), to read as follows:</text><quoted-block style="OLC" id="H550A301E35FE4335A1B6007129DC7DF2" display-inline="no-display-inline"><subparagraph id="HF94B3A38D6A246B594EB883835D934CC"><enum>(D)</enum><header>Amount of grant</header><text display-inline="yes-display-inline">A grant to a hospital under this paragraph shall be determined on an equal national distribution so that each hospital receives the same amount of support related to the funds appropriated. </text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="H78B0CC9B353743E39055F9BA81E8E328"><enum>(D)</enum><text display-inline="yes-display-inline">by amending subparagraph (E), to read as follows:</text><quoted-block style="OLC" id="H06FED59153B24B2E94EDBF4350549E7E" display-inline="no-display-inline"><subparagraph id="HFF7B57CABA1C4A768E45C528A2F2ECFD"><enum>(E)</enum><header>Use of funds</header><text display-inline="yes-display-inline">State Offices of Rural Health and eligible hospitals may use the funds received through a grant under this paragraph for the purchase of computer software and hardware; the education and training of hospital staff on billing, operational, quality improvement and related value-focused efforts; and other delivery system reform programs determined appropriate by the Secretary.</text></subparagraph><after-quoted-block>; and </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H4C2659E4DFE14DA4B72B33F64B801D94"><enum>(5)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H1AAB338492C64815AA96ECFA7ACB44CD" display-inline="no-display-inline"><paragraph id="H266864339FE64C5C84BE522ECF02318C"><enum>(9)</enum><header>Rural Health Transformation Grants</header><subparagraph id="H475C8F98494244B69FB26F3040D451CC"><enum>(A)</enum><header>Grants</header><text>The Secretary may award 5-year grants to State Offices of Rural Health and to eligible rural health care providers (as defined in subparagraph (D)) on the transition to new models, including rural emergency hospitals, extended stay clinics, freestanding emergency departments, rural health clinics, and integration of behavioral, oral health services, telehealth and other transformational models relevant to rural providers as such providers evolve to better meet community needs and the changing health care environment.</text></subparagraph><subparagraph id="H097AD3927B344BC4A7C49EBE2648F50A"><enum>(B)</enum><header>Application</header><text>An applicable rural health care provider, in partnership with the State Office of Rural Health in the State in which the rural health care provider seeking a grant under this paragraph is located, shall submit an application to the Secretary on or before such date and in such form and manner as the Secretary specifies.</text></subparagraph><subparagraph id="HB9129E5866F542B0BEDB74C19B080E80"><enum>(C)</enum><header>Additional requirements</header><text>The Secretary may not award a grant under this paragraph to an eligible rural health care provider unless—</text><clause id="H9898B4247FAC46DA8D795C52F45E0EB6"><enum>(i)</enum><text>local organizations or the State in which the hospital is located provides support (either direct or in kind); and there are letters of support from key State payers such as Medicaid and private insurance; and</text></clause><clause id="HE547D2E950714C79B8ED257F560CFD4D"><enum>(ii)</enum><text>the applicant describes in detail how the transition of the health care provider or providers will better meet local needs and be sustainable.</text></clause></subparagraph><subparagraph id="HB02F6BE4C18D4BAF925C475BA9A50154"><enum>(D)</enum><header>Eligible rural health care provider defined</header><text>For purposes of this paragraph, the term <term>eligible rural health care provider</term> includes a critical access hospital, a certified rural health clinic, a rural nursing home, skilled nursing facility, emergency care provider, or other entity identified by the Secretary. An eligible rural health care provider may include other entities applying on behalf of a group of providers such as a State Office of Rural Health, a State or local health care authority, a rural health network, or other entity identified by the Secretary.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section></title></legis-body></bill> 

