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HARRISBURG -- State Sen. Lisa Baker, R-20, has introduced legislation that would create a state license category for Rural Emergency Hospitals, giving eligible rural hospitals in Pennsylvania another option to maintain emergency and outpatient services.
Senate Bill 1454 would allow Critical Access Hospitals and rural hospitals with 50 or fewer beds to convert to federally designated Rural Emergency Hospitals, or REHs.
"Rural hospitals are critical infrastructure for the communities they serve, but financial pressures, workforce shortages and other challenges continue to threaten their ability to maintain inpatient services," Baker said. "We cannot wait until a hospital is on the verge of closing to start looking for solutions. We need to give rural providers options that allow them to adapt while keeping essential healthcare services available close to home."
The federal REH designation was created as an alternative for eligible rural hospitals facing financial and operational challenges. Hospitals with the designation can continue providing emergency, observation and outpatient services while receiving Medicare reimbursement for covered services and an additional monthly facility payment.
According to the Hospital and Healthsystem Association of Pennsylvania, more than 50 rural hospitals across 22 states have converted to REH status. The designation is not currently available to Pennsylvania hospitals.
"Pennsylvania's rural hospitals are continuing to face significant challenges, from workforce shortages to inadequate reimbursement and growing financial pressures," said Nicole Stallings, president and CEO of HAP. "Communities cannot afford to lose the essential services these hospitals provide. The REH model offers a pathway for hospitals that may no longer be able to sustain inpatient services to continue providing emergency and outpatient care close to home."
HAP reports that six Pennsylvania rural hospitals have closed since 2005, while nearly 200 rural hospitals have closed nationwide during the same period.
Baker said hospital closures can affect not only access to medical care but also local communities and economies.
"Every rural hospital closure has consequences that extend far beyond the hospital itself," Baker said. "When a hospital closes, patients may have to travel farther for care, communities can lose healthcare providers and local economies can be affected. Senate Bill 1454 provides another pathway for rural hospitals to consider and could help preserve access to care for the Pennsylvanians who depend on these facilities."
If enacted, the legislation would establish the state framework needed for eligible Pennsylvania hospitals to pursue the federal REH designation.