PolicyBrief
H.R. 538
119th CongressJan 16th 2025
Critical Access Hospital Relief Act of 2025
IN COMMITTEE

The "Critical Access Hospital Relief Act of 2025" removes the Medicare requirement for a physician to certify the need for inpatient critical access hospital services within 96 hours of admission, effective January 1, 2026.

Adrian Smith
R

Adrian Smith

Representative

NE-3

LEGISLATION

Medicare Cuts Red Tape for Rural Hospitals: 96-Hour Rule Axed in 2026

The Critical Access Hospital Relief Act of 2025 is straightforward: it eliminates the Medicare requirement that a physician certify a patient's need for inpatient care at a critical access hospital (CAH) within 96 hours of admission. Starting January 1, 2026, this rule is gone (SEC. 2). The main goal is to reduce the paperwork burden on these hospitals, which are often the only option for healthcare in rural communities.

Unpacking the Changes

The core of this bill is about streamlining care at critical access hospitals. By removing the 96-hour certification, the law aims to make it easier for these facilities to focus on patient care rather than administrative hurdles. Currently, doctors have to sign off that a patient truly needs to be in the hospital within that 96-hour window. This bill says that's no longer necessary for Medicare patients.

Real-World Ripple Effects

Imagine a small-town mechanic, Joe, who gets into a bad accident. The nearest hospital is a CAH. Under the current rules, even if Joe clearly needs to be there, a doctor still has to formally certify his stay within 96 hours. This bill removes that step. For Joe, and many others in rural areas, this could mean quicker, less complicated care. It also means the hospital staff spends less time on paperwork and more time on actual medical work.

Potential Pitfalls

While the aim is to cut red tape, there's a flip side. Without the 96-hour check-in, there's a chance some hospitals might keep patients longer than necessary, potentially driving up Medicare costs. It's like having a store without inventory checks – things could go missing. The bill doesn't add extra oversight to replace the certification, so it will be important to monitor how this plays out.

The Big Picture

This law is part of a bigger puzzle that includes existing Medicare rules and the challenges faced by rural healthcare providers. It connects to broader efforts to keep rural hospitals running and ensure people in these areas have access to the care they need. The change could be a significant relief for many small hospitals struggling to keep up with administrative demands, but it also requires a watchful eye to ensure it's used as intended.