Rural Emergency Hospitals

Published 02/27/2023

Starting January 1, 2023, Medicare will pay for Medicare-enrolled Rural Emergency Hospitals (REHs) to deliver emergency hospital, observation, and other services to Medicare patients on an outpatient basis.

Medicare has established REHs as a new Medicare provider type to address the growing concern over closures of rural hospitals. Section 125 of the Consolidated Appropriations Act of 2021 (CAA), Division CC (PDF) defines REHs. Medicare will pay an additional 5 percent over the payment rate of the Hospital Outpatient Prospective Payment System (OPPS) for REH services.

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