Second Chances for Rural Hospitals Act

This bill allows additional hospitals to qualify as rural emergency hospitals (REHs) under Medicare.

In 2020, Congress established REHs as a new Medicare provider designation for hospitals in rural areas providing emergency department services, observation care, and other outpatient medical and health services for which the annual per patient average length of stay does not exceed 24 hours. These hospitals must have been open as of December 27, 2020, in order to qualify for the new REH designation. 

The bill allows hospitals that were open between January 1, 2014, and December 26, 2020, to also qualify for the REH designation, and it provides for a specific payment structure for these hospitals. The bill's changes take effect beginning in 2027.