HR 6804
Rural Hospital Flexibility Act of 2025
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Bill overview
The Rural Hospital Flexibility Act of 2025 aims to strengthen Medicare grants for rural hospitals and related healthcare facilities. Specifically, it expands the types of facilities eligible for funding, including certified rural health clinics and rural emergency hospitals, and allows for technical assistance to support quality improvement and transformation efforts. The bill also creates new grant opportunities for rural health care providers to transition to innovative models of care, such as rural emergency hospitals and integrated behavioral health services.
Key provisions
- Expands eligible facilities for grants to include certified rural health clinics and rural emergency hospitals.
- Allows for technical assistance to rural hospitals and health care providers.
- Creates new grants for rural health care providers to transition to innovative care models.
- Establishes a process for awarding grants to State Offices of Rural Health.
- Provides funding for computer software and hardware purchases by rural hospitals.
- Supports education and training for rural hospital staff.
- Allows for the use of funds for delivery system reform programs.
- Creates Rural Health Transformation Grants to support the transition to new models of care.
Who is affected
- Medicare beneficiaries
- Rural hospitals
- State Offices of Rural Health
- Rural health care providers
- Healthcare providers
Notable changes
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Sanford D. Bishop
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119th CONGRESS — 1st Session
H. R. 6804
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend title XVIII of the Social Security Act to strengthen Medicare rural hospital flexibility program grants.
This Act may be cited as the Rural Hospital Flexibility Act of 2025
.
Section 1820(g) of the Social Security Act (42 U.S.C. 1395i–4(g)) is amended—
by amending paragraph (1)(D) to read as follows:
by redesignating paragraphs (3) through (7) as paragraphs (4) through (8), respectively;
after paragraph (2), by inserting the following new paragraph:
in paragraph (4), as redesignated—
in subparagraph (A)—
in the header, by striking hospitals
and inserting State Offices of Rural Health
; and
by striking grants to hospitals
and inserting grants to State Offices of Rural Health
;
in subparagraph (B)—
by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively;
by striking means a non-Federal
and inserting the following:
means—
by striking the period at the end and inserting the following:
; or
by amending subparagraph (C) to read as follows:
The State Office of Rural Health shall submit an application to the Secretary on or before such date and in such form and manner as the Secretary specifies.
by amending subparagraph (D) to read as follows:
in subparagraph (F)—
in clause (i), by striking A hospital receiving a grant under this section
and inserting An entity receiving a grant under this paragraph
; and
in clause (ii), by striking section
each place such term appears and inserting paragraph
in each such place;
in paragraph (5), as redesignated, by striking paragraph (1) or (2)
and inserting paragraph (1), (2), or (4)
; and
by adding at the end the following new paragraphs:
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.
An eligible rural health care provider, in consultation 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.
The Secretary may not award a grant under this paragraph to an eligible rural health care provider unless—
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
the applicant describes in detail how the transition of the health care provider or providers will better meet local needs and be sustainable.
For purposes of this paragraph, the term eligible rural health care provider 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 rural health care 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.