Senators work to ensure new Rural Emergency Hospital Medicare designation is swiftly introduced
June 11, 2021 - WASHINGTON – Following passage of their legislation to help rural hospitals stay open, U.S. Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) are calling on 
the Centers for Medicare & Medicaid Services (CMS) to ensure a timely and stakeholder-driven implementation of the new and voluntary Rural Emergency Hospital (REH) Medicare payment designation.
In May 2017, Klobuchar and Grassley introduced the bipartisan Rural Emergency Acute Care Hospital (REACH) Act to create a new REH classification under Medicare. This bill strengthens support for hospitals that maintain an emergency room and provide outpatient services. Provisions of this legislation were passed and signed into law as part of the 2020 bipartisan year-end agreement, authorizing the creation of a new Rural Emergency Hospital classification under Medicare.
“The REH designation offers the flexibility to support rural hospitals that can no longer support inpatient services while maintaining services that better align with the specific needs of their patient population including 24/7 emergency care, outpatient care, ambulance services, and more. It is important that federal regulations and guidance adequately consider the needs of rural providers. This will ensure REH is a viable solution for rural hospitals giving rural communities the quality of life they deserve,” the Senators wrote in a letter to CMS Administrator Chiquita Brooks-LaSure.
Full text of the letter can be found HERE and below.
Dear Administrator Brooks-LaSure,
Access to emergency and primary health care services is a basic quality of life issue for a resident of any sized community. Section 125 of Public Law (P.L.) 116-260 established the Rural Emergency Hospital (REH) voluntary Medicare payment designation. This bipartisan solution will support struggling rural hospitals by allowing them to voluntarily right-size their health care infrastructure while maintaining essential medical services for their rural communities. We request you prioritize the implementation of this law by establishing a project lead at the Centers for Medicare & Medicaid Services (CMS) to ensure a timely and stakeholder driven implementation.
A recent Government Accountability Office (GAO) report found more than 100 rural hospitals have closed in 28 different states since 2013. The COVID-19 pandemic has only further strained rural hospital finances. If nothing is done, more hospitals and rural Americans will continue losing access to essential medical services resulting in poorer outcomes and higher costs for patients and taxpayers. The REH designation offers the flexibility to support rural hospitals that can no longer support inpatient services while maintaining services that better align with the specific needs of their patient population including 24/7 emergency care, outpatient care, ambulance services, and more. It is important that federal regulations and guidance adequately consider the needs of rural providers. This will ensure REH is a viable solution for rural hospitals giving rural communities the quality of life they deserve. We stand ready to support your efforts to implement REH in a timely and stakeholder-driven manner.
Source: Senator Amy Klobuchar
