H.R. 1805: Assistance for Rural Community Hospitals Act

This bill, known as the Assistance for Rural Community Hospitals Act (ARCH Act), aims to make several modifications related to Medicare payments specifically for rural hospitals. The main goals of the bill are to extend certain payment methodologies and to require a report on hospital classifications related to Medicare.

Key Provisions

1. Extension of Medicare Payments

The bill proposes to extend the payment methods for two types of hospitals:

• Medicare-dependent hospitals (MDHs): The period for which MDHs can receive certain Medicare payments would be extended from April 1, 2025, to October 1, 2031. This means that MDHs will continue to benefit from these specific payment adjustments for a longer time.
• Low-volume hospitals (LVHs): Similarly, the payment adjustments for LVHs would also be extended to the same date of October 1, 2031. This provision ensures that low-volume hospitals can also maintain their financial viability through extended Medicare support.

2. GAO Report Requirement

The bill mandates that the Comptroller General of the United States must submit a report to Congress within 180 days post-enactment. This report will include:

• The total number of hospitals classified as:
• Critical Access Hospitals
• Rural Emergency Hospitals
• Rural Referral Centers
• Sole Community Hospitals
• Medicare-dependent, small rural hospitals
• Low-volume hospitals
• An analysis of the overlap in criteria among these classifications.
• Recommendations for simplifying the classification system and improving the financial sustainability of rural hospitals.
• A projection of the effects of allowing certain hospitals to use past cost reporting periods for calculating payments.

Overall Impact

The overall intent of the ARCH Act is to provide financial assistance and stability to rural hospitals that face unique challenges compared to urban healthcare facilities. By extending the relevant Medicare payments and requiring a thorough assessment of hospital classifications, the bill aims to improve the healthcare framework for rural communities.

Relevant Companies

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