Bills · S 502
IN COMMITTEE· 119TH CONGRESS
Senate BillS 502MedicareRural conditions and development
Rural Hospital Closure Relief Act of 2025
INTRO FEB 10· LAST ACTION FEB 10
READING
10MIN
COSPONSORS
7BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters to voters because it directly addresses the ongoing crisis of rural hospital closures, which has left many rural communities without nearby emergency care, specialized services, or even basic primary care. If this bill becomes law, it could provide a lifeline for many struggling rural hospitals, ensuring that people in remote areas don't have to travel vast distances for medical attention, especially for emergencies.
Without this bill, more rural hospitals might close, further worsening healthcare access in already underserved areas and increasing the strain on remaining facilities. By allowing certain financially distressed hospitals to become Critical Access Hospitals, the bill offers a pathway for these facilities to stabilize their finances and even expand much-needed local services, improving the health and well-being of rural populations. However, it is a temporary solution with limits, so its long-term impact on rural healthcare sustainability will depend on how hospitals use this new flexibility.
KEY PROVISIONS
5AI-extractedPROVISION 01
Restores states' ability to waive the 35-mile distance rule for certain hospitals to become Critical Access Hospitals (CAHs).
This allows specific struggling rural hospitals to qualify for higher Medicare payments, which is crucial for their survival.
PROVISION 02
Establishes strict eligibility criteria for hospitals to receive this waiver, including having two consecutive years of negative operating margins and being located in a rural or low-income area.
It targets financial relief to hospitals that are most vulnerable to closure and serve needy populations.
PROVISION 03
Limits the total number of hospitals that can be designated under this waiver to 120 nationwide and no more than 5 per state.
This controls the overall scope and cost implications of the program while still providing targeted relief.
PROVISION 04
Requires eligible hospitals to commit to opening or expanding a new service line that is in high demand or limited supply in their area, such as obstetrics or behavioral health.
This provision ensures that financial relief is tied to improving access to critical healthcare services for the local community.
PROVISION 05
Includes a sunset provision, meaning that no new hospitals can be certified under this specific waiver after nine years from the bill's enactment.
This makes the waiver authority temporary, allowing for future reevaluation of its effectiveness and necessity.
SPONSORSHIP
1 + 7
D· Illinois
YRS IN OFFICE
43
BILLS LED
136
COSPONSOR BREAKDOWNBIPARTISAN · 85%
DEM 3 REP 4 IND 0
ACTION TIMELINE
2 EVENTSFEB 10
Introduced in Senate
FEB 10
Read twice and referred to the Committee on Finance. (text: CR S820-821)
BILL INFO
TypeSenate Bill
NumberS 502
Congress119th
StatusIn Committee
IntroducedFeb 10, 2025
Last actionFeb 10, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED FEB 10, 2025
Senate BillS 502MedicareRural conditions and development
Rural Hospital Closure Relief Act of 2025
INTRODUCED FEB 10, 2025· LAST ACTION FEB 10, 2025
PASSAGE CHANCES
—%
READING
10 min
COSPONSORS
7
COMPLEXITY
Moderate
