Will Final Rules for the Rural Emergency Hospital Designation Convince Rural Hospitals & CAHs?

Established by the Consolidated Appropriations Act of 2021 (CAA), Rural Emergency Hospital (REH) became a new designation in the Medicare program and an eligible originating site for telehealth delivered services (to go into effect in 2023). The designation is meant for facilities that convert from either a critical access hospital (CAH) or a rural hospital with less than 50 beds and that do not provide acute care inpatient services (although there is an exception for skilled nursing facility (SNF) services). However, some rural hospitals and CAHs are hesitating to adopt the new model.
On November 1, 2022, the Centers for Medicare and Medicaid Services (CMS) released their final rule for the CY 2023 Medicare Physician Fee Schedule (PFS). CMS had previously released their proposed version on July 7, 2022. After receiving submitted feedback from the public during the comment period, CMS published the final version that, unless otherwise stated, will have policies going into effect January 1, 2023. Much of what was proposed in July remains in this final version.

