[Congressional Record Volume 164, Number 139 (Tuesday, August 21, 2018)]
[Senate]
[Pages S5783-S5784]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3886. Mr. GRASSLEY (for himself, Ms. Klobuchar, and Mr. Gardner) 
submitted an amendment intended to be proposed by him to the bill H.R. 
6157, making appropriations for the Department of Defense for the 
fiscal year ending September 30, 2019, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

          DIVISION C--RURAL EMERGENCY ACUTE CARE HOSPITAL ACT

     SECTION _01. SHORT TITLE.

       This division may be cited as the ``Rural Emergency Acute 
     Care Hospital Act''.

     SEC. _02. FINDINGS.

       Congress finds the following:
       (1) According to the University of North Carolina's Center 
     for Health Services Research, 55 rural hospitals have closed 
     in the Unites States since January 2010.
       (2) In 2014, iVantage conducted a study for the National 
     Rural Health Association and found 283 hospitals at risk of 
     closure based upon performance indicators that matched those 
     facilities already forced to close in this decade.
       (3) Researchers at the University of North Carolina 
     identified inpatient volume as a substantial contributing 
     factor to the financial performance of rural hospitals, with 
     many of the at-risk hospitals having an average daily bed 
     census of less than two.
       (4) Adverse impacts to the local economy and the loss of 
     timely access to emergency medical care are 2 major effects 
     of rural hospital closures.
       (5) According to the National Center for Rural Health 
     Works, the typical rural hospital creates over 140 jobs and 
     generates $6,800,000 in compensation while serving an average 
     population of 14,600.
       (6) The 2014 iVantage study estimates that the 283 at-risk 
     hospitals could result in the loss of 36,000 health care 
     jobs, 50,000 community jobs, and $10,600,000,000 in gross 
     domestic product.
       (7) Time is the most critical factor for achieving 
     successful outcomes in emergency medicine, and emergency 
     medical clinicians refer to the time-sensitive period during 
     which successful outcomes may be best achieved as the 
     ``golden hour''.
       (8) The National Conference of State Legislatures states 
     that 60 percent of trauma deaths in the United States occur 
     in rural areas, where only 15 percent of the population is 
     represented.
       (9) The disproportionate percentage of trauma deaths in 
     rural areas is likely attributable in large part to a 
     combination of response time to the scene and distance to the 
     nearest emergency room to stabilize trauma victims.
       (10) The percentage of trauma deaths occurring in rural 
     areas could continue to increase as more rural hospitals 
     close, further limiting access to emergency services and 
     requiring patients to travel longer distances to receive 
     emergency medical care.
       (11) The creation of a rural emergency hospital designation 
     under the Medicare program will allow facilities in rural 
     areas to provide emergency medical services without having to 
     maintain inpatient beds.
       (12) In addition to providing emergency care, rural 
     emergency hospitals could convert the space previously used 
     for inpatient services to provide other medical services 
     including, but not limited to, observation care, skilled 
     nursing facility care, infusion services, hemodialysis, home 
     health, hospice, nursing home care, population health, and 
     telemedicine services.

     SEC. _03. RURAL EMERGENCY HOSPITAL PROGRAM.

       (a) In General.--
       (1) Rural emergency hospital and services defined.--Section 
     1861 of the Social Security Act (42 U.S.C. 1395x) is 
     amended--
       (A) in subsection (e), in the last sentence of the matter 
     following paragraph (9), by inserting ``or a rural emergency 
     hospital (as defined in section 1861(jjj)(1))'' before the 
     period at the end; and
       (B) by adding at the end the following subsection:

    ``Rural Emergency Hospital; Rural Emergency Hospital Outpatient 
                                Services

       ``(jjj)(1) The term `rural emergency hospital' means a 
     facility that--
       ``(A)(i) as of December 31, 2016--
       ``(I) was a critical access hospital; or
       ``(II) was a hospital with not more than 50 beds located in 
     a county (or equivalent unit of local government) in a rural 
     area (as defined in section 1886(d)(2)(D)), or was a hospital 
     with not more than 50 beds that was treated as being located 
     in a rural area pursuant to section 1886(d)(8)(E); or
       ``(ii) was a critical access hospital described in clause 
     (i)(I) or a hospital described in clause (i)(II) that ceased 
     operations during the period beginning on the date that is 5 
     years prior to the date of the enactment of this subsection 
     and ending on December 30, 2016;
       ``(B) provides 24-hour emergency medical care and 
     observation care that does not exceed an annual per patient 
     average of 24 hours or more than 1 midnight;
       ``(C) does not provide any acute care inpatient beds and 
     has protocols in place for the timely transfer of patients 
     who require acute care inpatient services or other inpatient 
     services;
       ``(D) has elected to be designated as a rural emergency 
     hospital;
       ``(E) has received approval to operate as a rural emergency 
     hospital from the State under section 1834(v)(3)(A); and
       ``(F) is certified by the Secretary under section 
     1834(v)(3)(B).
       ``(2) The term `rural emergency hospital outpatient 
     services' means medical and other health services furnished 
     by a rural emergency hospital on an outpatient basis.

[[Page S5784]]

       ``(3) Nothing in this subsection or section 1834(v)(3) 
     shall be construed to prohibit a rural emergency hospital 
     from providing extended care services.''.
       (2) Payment for rural emergency hospital services.--
       (A) In general.--Section 1833(a) of the Social Security Act 
     (42 U.S.C. 1395l(a)) is amended--
       (i) in paragraph (8), by striking ``and'' at the end;
       (ii) in paragraph (9), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by inserting after paragraph (9) the following new 
     paragraph:
       ``(10) in the case of rural emergency hospital emergency 
     services and services provided by a rural emergency hospital 
     or other provider of ambulance services to transport patients 
     who require acute care inpatient services or other inpatient 
     services from such rural emergency hospital to a hospital or 
     critical access hospital, the amounts described in section 
     1834(v).''.
       (B) Payment amount.--Section 1834 of the Social Security 
     Act (42 U.S.C. 1395m) is amended by adding at the end the 
     following subsection:
       ``(v) Payment Rules Relating to Rural Emergency 
     Hospitals.--
       ``(1) Payment for rural emergency hospital outpatient 
     services.--
       ``(A) In general.--The amount of payment for rural 
     emergency hospital outpatient services of a rural emergency 
     hospital is equal to 110 percent of the reasonable costs of 
     providing such services.
       ``(B) Telehealth services.--For purposes of this paragraph, 
     in determining the reasonable costs of providing rural 
     emergency hospital outpatient services, costs associated with 
     having a backup physician available via a telecommunications 
     system shall be considered reasonable costs.
       ``(2) Payment for transportation services.--The amount of 
     payment for services provided by a rural emergency hospital 
     or other provider of ambulance services to transport patients 
     who require acute care inpatient services or other inpatient 
     services from such rural emergency hospital to a hospital or 
     critical access hospital is equal to 110 percent of the 
     reasonable costs of providing such services.
       ``(3) Requirements for rural emergency hospitals.--
       ``(A) State approval to operate as a rural emergency 
     hospital.--No payment shall be made under this subsection to 
     a facility, or to a provider of ambulance services providing 
     transportation services from such facility, unless the State 
     in which the facility is located has approved the facility's 
     designation as a rural emergency hospital.
       ``(B) Certification of rural emergency hospital.--
       ``(i) In general.--No payment shall be made under this 
     subsection to a facility, or to a provider of ambulance 
     services providing transportation services from such 
     facility, unless the facility has been certified by the 
     Secretary as a rural emergency hospital.
       ``(ii) Certification requirements.--The Secretary shall 
     certify a facility as a rural emergency hospital if the 
     facility--

       ``(I) meets the criteria for rural emergency hospitals 
     described in subparagraphs (A) through (E) of section 
     1861(jjj)(1);
       ``(II) either--

       ``(aa) is verified by the American College of Surgeons or a 
     State as having the resources required of a level IV trauma 
     center or higher; or
       ``(bb) employs healthcare professionals that successfully 
     completed within the preceding 4 years--
       ``(AA) the Advanced Trauma Life Support Course offered by 
     the American College of Surgeons; or
       ``(BB) another trauma training program for healthcare 
     professionals that is accepted by a State trauma system for 
     certification purposes;

       ``(III) has in effect a transfer agreement with a level I 
     or level II trauma center; and
       ``(IV) meets such staff training and certification 
     requirements as the Secretary may require.

       ``(4) Coinsurance.--
       ``(A) In general.--The amount of payment for rural 
     emergency hospital services or transportation services made 
     to a rural emergency hospital or other provider of ambulance 
     services under this subsection shall be reduced by the 
     coinsurance amount described in subparagraph (B).
       ``(B) Coinsurance amount.--The coinsurance amount described 
     in this subparagraph, with respect to an item or service 
     provided by a rural emergency hospital or provider of 
     ambulance services, shall be calculated in the same manner as 
     the coinsurance amount for an outpatient critical access 
     hospital service is calculated under section 1866(a)(2).''.
       (b) Waiver of Distance Requirement for Replacement CAHs; 
     Subsequent Redesignation of Rural Emergency Hospitals as 
     CAHs.--Section 1820(c)(2) of the Social Security Act (42 
     U.S.C. 1395i-4(c)(2)) is amended--
       (1) in subparagraph (B)(i)(I), by inserting ``subject to 
     subparagraph (F),'' before ``is located''; and
       (2) by adding at the end the following new subparagraphs:
       ``(F) Option to waive distance requirement.--Beginning on 
     the date of the enactment of this subparagraph, for every 
     critical access hospital located in a State that is certified 
     as a rural emergency hospital under section 1834(v)(3)(B), 
     the State shall have the option of waiving the distance 
     requirement described in subparagraph (B)(i)(I) with respect 
     to another facility located in the State that is seeking 
     designation as a critical access hospital under this 
     paragraph.
       ``(G) Redesignation of a rural emergency hospital as a 
     critical access hospital.--A rural emergency hospital that 
     was previously designated as a critical access hospital under 
     this paragraph may elect to be redesignated as a critical 
     access hospital (in the same manner that the hospital was 
     originally designated as a critical access hospital) at any 
     time, subject to such conditions as the Secretary may 
     establish.''.
       (c) Studies and Reports.--
       (1) Studies.--The Secretary of Health & Human Services 
     shall conduct 3 studies to evaluate the impact of rural 
     emergency hospitals on the availability of health care and 
     health outcomes in rural areas (as defined in section 
     1886(d)(2)(D) of the Social Security Act (42 U.S.C. 
     1395ww(d)(2)(D))). The Secretary shall conduct a study--
       (A) 2 years after the date of the enactment of this Act;
       (B) 5 years after the date of the enactment of this Act; 
     and
       (C) 10 years after the date of the enactment of this Act.
       (2) Reports.--Not later than 6 months after each date that 
     the Secretary of Health & Human Services is required to 
     conduct a study under paragraph (1), the Secretary shall 
     submit a report to Congress containing the results of each 
     such study.
       (d) Effective Date.--The amendments made by this section 
     shall apply to items and services furnished on or after the 
     date that is 1 year after the date of the enactment of this 
     Act.

     SEC. _04. INCLUSION OF EMERGENCY MEDICINE AS HEALTH SERVICES 
                   UNDER THE NATIONAL HEALTH SERVICE CORPS.

       Section 331(a)(3)(D) of the Public Health Service Act (42 
     U.S.C. 254d(a)(3)(D)) is amended by inserting ``, and 
     includes emergency medicine provided by physicians in a rural 
     emergency hospital (as defined in section 1861(jjj) of the 
     Social Security Act)'' before the period.

     SEC. _05. PERMITTING HOSPITALS WITH APPROVED RESIDENCY 
                   PROGRAMS IN EMERGENCY MEDICINE TO INCLUDE TIME 
                   SPENT BY INTERNS AND RESIDENTS IN THE EMERGENCY 
                   DEPARTMENT OF A RURAL HOSPITAL IN FULL-TIME 
                   EQUIVALENT COUNT.

       (a) Indirect Medical Education.--Section 1886(d)(5)(B)(iv) 
     of the Social Security Act (42 U.S.C. 1395ww(d)(5)(B)(iv)) is 
     amended by adding at the end the following new subclause:
       ``(III) Effective for discharges occurring on or after 
     October 1, 2017, all of the time spent in patient care 
     activities in the emergency department of a rural hospital by 
     interns and residents in emergency medicine from a hospital 
     with an approved medical residency training program (as 
     defined in subsection (h)(5)(A)) in such specialty shall be 
     included in determining the number of full-time equivalent 
     interns and residents in such program if the hospital with 
     such program incurs the costs of the stipends and fringe 
     benefits of the interns or residents during the time the 
     interns or residents spend in that rural hospital in 
     accordance with subclause (II). In this subclause, the term 
     `rural hospital' means a hospital that is located in a rural 
     area (as defined for purposes of paragraph (2)(D)).''.
       (b) Direct Medical Education.--Section 1886(h)(4)(E) of the 
     Social Security Act (42 U.S.C. 1395(h)(4)(E)) is amended--
       (1) in clause (ii), by striking the period at the end and 
     inserting ``; and'';
       (2) by inserting after clause (ii) the following new 
     clause:
       ``(iii) effective for cost reporting periods beginning on 
     or after July 1, 2017, all of the time so spent in the 
     emergency department of a rural hospital by residents in 
     emergency medicine from a hospital with an approved medical 
     residency training program in such specialty shall be counted 
     towards the determination of full-time equivalency in such 
     program if the hospital with such program bears all, or 
     substantially all, of the costs of training such residents in 
     the rural hospital. In this subparagraph, the term `rural 
     hospital' means a hospital that is located in a rural area 
     (as defined for purposes of subsection (d)(2)(D)).''; and
       (3) by adding at the end the following new sentence: ``For 
     purposes of this subparagraph, the emergency department of a 
     rural hospital described in clause (iii) is a nonprovider 
     setting.''.
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