SenateS. 4927119th Congress

Rural Hospital Emergency Room Guarantee Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4927 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4927

  To establish a guaranteed funding stream to keep existing emergency 
    rooms at America's rural hospitals open, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 24, 2026

Mr. Hawley (for himself and Ms. Hassan) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
  To establish a guaranteed funding stream to keep existing emergency 
    rooms at America's rural hospitals open, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Hospital Emergency Room 
Guarantee Act''.

SEC. 2. RURAL HOSPITAL EMERGENCY ROOM GUARANTEE FUND.

    Part P of title III of the Public Health Service Act (42 U.S.C. 
280g et seq.) is amended by adding at the end the following:

``SEC. 399V-8. RURAL HOSPITAL EMERGENCY ROOM GUARANTEE FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States a fund, to be known as the `Rural Hospital Emergency Room 
Guarantee Fund' (referred to in this section as the `Fund'), consisting 
of--
            ``(1) such amounts as are appropriated to the fund pursuant 
        to subsection (i); and
            ``(2) any amounts collected as civil monetary penalties 
        under subsection (g)(2)(A).
    ``(b) Administration.--The Fund shall be administered by the 
Secretary, acting through the Administrator of the Health Resources and 
Services Administration (referred to in this section as the 
`Secretary').
    ``(c) Use of Funds.--
            ``(1) In general.--Amounts in the Fund shall be available, 
        without further appropriation or fiscal year limitation, to the 
        Secretary to make payments under the program established under 
        paragraph (2).
            ``(2) Program.--
                    ``(A) In general.--Not later than 90 days after the 
                date of enactment of the Rural Hospital Emergency Room 
                Guarantee Act, the Secretary shall establish, and 
                solicit applications for, a 10-year program (referred 
                to in this section as the `program') to make payments 
                to eligible entities for the authorized uses described 
                in subsection (e).
                    ``(B) Payments.--Each year of the program, the 
                Secretary shall--
                            ``(i) make a payment--
                                    ``(I) in the first year of the 
                                program, in the amount of $1,000,000 
                                (to be distributed in equal payments on 
                                a quarterly basis) to each eligible 
                                entity with an approved application 
                                under subsection (d)(2); and
                                    ``(II) in each subsequent year of 
                                the program, in an amount equal to the 
                                amount of the payment for the preceding 
                                year, as adjusted to reflect changes 
                                for the 12-month period ending the 
                                preceding November 30 in the Consumer 
                                Price Index for Medical Care Services 
                                published by the Bureau of Labor 
                                Statistics of the Department of Labor; 
                                and
                            ``(ii) make an additional payment to each 
                        such eligible entity in an amount not greater 
                        than 50 percent of the amount of the payment 
                        made to such eligible entity under clause (i) 
                        for that year, to be determined by the 
                        Secretary with respect to each such eligible 
                        entity pursuant to a formula established by the 
                        Secretary by rulemaking based on, with respect 
                        to an eligible entity--
                                    ``(I) the payor mix of the eligible 
                                entity;
                                    ``(II) the injury need of patients 
                                within the immediate geographical area 
                                in which the eligible entity is 
                                located;
                                    ``(III) the economic conditions in 
                                the geographic area in which such 
                                eligible entity is located; and
                                    ``(IV) past financial history of 
                                such eligible entity.
                    ``(C) Emergency payments.--The Secretary may make 
                an additional payment, in an amount not to exceed 
                $250,000, to an eligible entity with an approved 
                application under subsection (d)(2) in any year of the 
                program if the Secretary determines that the emergency 
                department of such eligible entity is in danger of 
                closing in the next 14 days, on the condition that no 
                eligible entity may receive more than 1 such payment in 
                any year of the program.
    ``(d) Applications; Approval; Eligibility.--
            ``(1) In general.--Each entity desiring to receive payments 
        under the program shall submit to the Secretary an application 
        at such time, in such manner, and containing such information 
        as the Secretary may require.
            ``(2) Approval.--
                    ``(A) In general.--Not later than 30 days after 
                receiving an application under paragraph (1), the 
                Secretary shall approve such application if the 
                Secretary determines that such entity meets the 
                eligibility criteria described in paragraph (3). Such 
                approval shall apply with respect to such an entity for 
                the duration of the program, except as provided in 
                paragraph (4).
                    ``(B) Requirement.--If the Secretary does not 
                approve an application under subparagraph (A), as soon 
                as practicable after such disapproval, the Secretary 
                shall provide to the applicant--
                            ``(i) an explanation of the reason for the 
                        disapproval; and
                            ``(ii) an expedited process for curing any 
                        deficiencies in the application and reapplying.
            ``(3) Eligibility.--To be eligible to receive a payment 
        under the program, an entity--
                    ``(A) shall be a rural health facility (as defined 
                in section 2105(h)(3)(D) of the Social Security Act), 
                other than an entity described in clause (i)(II) of 
                such section;
                    ``(B) shall participate in a Federal health care 
                program (as defined in section 1128B(f) of such Act); 
                and
                    ``(C) shall operate a 24-hour emergency department 
                of a hospital (as defined in section 2799A-1(a)(3)) or 
                a 24-hour independent freestanding emergency department 
                (as so defined).
            ``(4) Condition of participation.--After the date on which 
        the application of an eligible entity is approved under 
        paragraph (2)(A), if such eligible entity is acquired, in whole 
        or in part, by a private-equity, venture-capital, or similarly 
        purposed ownership fund, such eligible entity may not continue 
        to participate in the program.
    ``(e) Authorized Uses.--An eligible entity receiving payments under 
the program--
            ``(1) may only use the funds to pay for the normal 
        operating expenses, including for staffing, of the emergency 
        department of such eligible entity; and
            ``(2) may not--
                    ``(A) use the funds--
                            ``(i) to develop projects that do not 
                        directly impact the existing operations of such 
                        eligible entity; or
                            ``(ii) to make payments to executives, 
                        executive staff, or members of the board of 
                        directors of such eligible entity; or
                    ``(B) transfer the funds to other facilities, 
                including other facilities of such eligible entity.
    ``(f) Reporting.--Each eligible entity receiving payments under the 
program shall submit to the Secretary an annual report describing the 
financial condition and continued need of such eligible entity and the 
impact of such payments received during the preceding year on such 
eligible entity. The Secretary may not use such reported information to 
disqualify such eligible entity from participation in the program.
    ``(g) Compliance.--
            ``(1) In general.--The Secretary shall conduct random 
        audits of eligible entities receiving payments under the 
        program to ensure the compliance of such eligible entities with 
        the requirements of the program.
            ``(2) Violations.--If the Secretary determines that an 
        eligible entity has violated a requirement of the program, the 
        Secretary may--
                    ``(A) impose civil penalties, including civil 
                monetary penalties, against such eligible entity; or
                    ``(B) remove such eligible entity from 
                participation in the program.
    ``(h) Regulations for Reporting.--Not later than 90 days after the 
date of enactment of the Rural Hospital Emergency Room Guarantee Act, 
the Secretary, acting through the Administrator of the Centers for 
Medicare & Medicaid Services, shall promulgate regulations--
            ``(1) establishing a reporting methodology for eligible 
        entities enrolled in the Medicare program under title XVIII of 
        the Social Security Act under section 1866(j) of such Act to 
        disclose for informational purposes on any required cost 
        reports under such title XVIII all payments received under the 
        program; and
            ``(2) allowing an eligible entity to exclude all payments 
        received under the program from cost settlement calculations 
        and expense offsets.
    ``(i) Mandatory Funding.--Out of any money in the Treasury not 
otherwise appropriated, there is authorized to be appropriated, and 
there is appropriated, to the Fund such sums as are necessary for each 
of fiscal years 2026 through 2036.
    ``(j) Effect.--Participation in the program shall not be taken into 
account in determining eligibility of an eligible entity under any 
other Federal health care program (as defined in section 1128B(f) of 
the Social Security Act) and any payment under the program shall be in 
addition to any payment such eligible entity is eligible to receive 
under any other Federal health care program (as so defined).''.
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