The Hospital Stability and Health Services Act of 2024 requires hospitals participating in Medicare to provide at least 90 days advance notice before closing or discontinuing major services, and prohibits them from cutting essential services during the notification period unless patient or employee safety is at immediate risk. When a hospital notifies the federal government of planned closures or service reductions, it must submit detailed information about affected patients, employees, and communities, along with a mitigation plan to preserve access to critical services like emergency care or specialty treatment that cannot easily be replaced in the area. The bill establishes a public comment process allowing community members and other healthcare providers to weigh in on proposed closures, and gives the Secretary of Health and Human Services authority to work with hospitals and other providers to develop alternative plans if a closure would significantly harm access to essential services. Hospitals that violate these requirements can face penalties including ineligibility to participate in Medicare for up to three years. The legislation also requires the Secretary to submit annual reports to Congress tracking hospital closures and service reductions and their impact on healthcare access nationwide.
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