The new (since 2023) classification of some hospitals as “Rural Emergency Hospitals” is proving to be an effective tool for preserving access to care in some rural communities.

The program, introduced to help stem the closure of rural hospitals, which was leaving many communities without reasonable access to care, appears to be having the desired effect.  Among the benefits reported by the administrators of such hospitals – which must apply for this special federal designation – are preservation of access to emergency and outpatient services, including surgery, laboratory, imaging, and therapy, in communities where they were otherwise in jeopardy; financial predictability and stability; better financial treatment by Medicare; the ability to reinvest in facilities; enhanced employee recruitment and retention; and the elimination of challenging back-office functions such as preauthorizations, managing denials of inpatient hospitalizations, and more.

The Rural Emergency Hospital designation would be even more useful, administrators suggest, if those facilities were eligible to participate in the 340B drug pricing program and loan forgiveness.

Learn more about how the Rural Emergency Hospital designation is improving access to care in some communities from the Becker’s Hospital Review article “‘We would be going out of business if we didn’t’:  4 leaders on converting to rural emergency hospitals.”