Rep. Mike Flood U.S. Representative for Nebraska's 1st District | Official U.S. House headshot
Rep. Mike Flood U.S. Representative for Nebraska's 1st District | Official U.S. House headshot
U.S. Representatives Mike Flood and Adrian Smith have introduced a new bill aimed at supporting rural hospitals. The Supporting Access to Rural Community Hospitals Act of 2025, which also has a companion measure in the Senate introduced by Senator Deb Fischer, seeks to provide rural hospitals with more flexibility in choosing reimbursement models to enhance their financial sustainability.
"Rural community hospitals are the backbone of healthcare across vast areas of Nebraska and the country," stated Congressman Flood. He emphasized that the legislation allows these facilities to better meet their needs and those of their communities while maintaining quality care for patients. Flood expressed gratitude towards his Nebraska colleagues, Congressman Smith and Senator Fischer, for their support in leading this initiative.
Currently, Critical Access Hospitals (CAH) receive cost-based reimbursement for all services provided to rural communities. In contrast, hospitals participating in the Rural Community Hospital Demonstration (RCHD) program only receive such reimbursement for certain services but can maintain a higher number of beds.
The proposed legislation offers RCHD hospitals an optional one-time election period to designate themselves as CAHs if they meet all eligibility requirements except the minimum 35-mile proximity rule between CAHs. This change would allow essential hospitals to choose between two beneficial federal programs, enabling them to continue serving their communities effectively.
"Hospitals serving rural populations in Nebraska and across the country should operate under the Medicare reimbursement designations which best fit their needs and circumstances," said Congressman Smith. He noted that this bill provides regulatory flexibility that ensures rural hospitals can best serve Nebraskans.
Senator Fischer added, "Rural community hospitals ensure that every Nebraskan can access the health services they rely on, regardless of their zip code." She highlighted that the legislation would help sustain rural hospitals by allowing them to select the program most suitable for their current needs.
The full text of the legislation is available online for public viewing.
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