The PEAKS Act protects rural hospitals' access to federal Medicare funding by allowing certain critical access hospitals to maintain their status even if new medical facilities open nearby. Specifically, hospitals that were designated as critical access hospitals based on being in mountainous terrain or areas with only secondary roads will be deemed to continue meeting distance requirements—even if a new hospital or facility opens within 10–15 miles of them after the law takes effect. The bill also expands ambulance service coverage for critical access hospitals in mountainous or remote areas, extending the distance they can travel and still receive Medicare reimbursement from 35 miles to 15 miles of driving distance starting January 1, 2026. The Secretary of Health and Human Services must issue regulations within one year to implement these changes. This legislation affects rural and mountainous communities that rely on critical access hospitals for emergency care, helping ensure these facilities remain economically viable and available to patients in isolated regions.
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