HB 1179 Summary

• Creates a statutory framework for the Department of Health to license hospitals as rural emergency hospitals if they elect the Medicare designation, provide emergency services with average stays of 24 hours or less, meet federal requirements under 42 U.S.C. § 1395x(kkk)(2), and pass inspection.

• Limits rural emergency hospital licensing to facilities that were operating as critical access hospitals as of December 27, 2020.

• Allows facilities converting from critical access hospital status to another facility type after April 1, 2025 to maintain distinct Medicaid reimbursement rates for long-term and skilled nursing care services.

• Addresses rural hospital financial sustainability by enabling transition to a federal rural emergency hospital designation, which provides approximately $3.2 million in annual fixed Medicare payments plus 5% higher reimbursement for outpatient services.