The Rural Hospital Flexibility Act of 2025 expands and strengthens federal support programs for hospitals and health care providers in rural America through amendments to Medicare law. The bill enhances existing grants to rural hospitals, critical access hospitals, and rural health clinics by broadening the types of activities these grants can fund—including quality improvement, behavioral health services, and emergency response. The legislation also creates new grant programs: a "Rural Health Transformation Grants" program offering 5-year funding to help rural providers transition to new service models like rural emergency hospitals and telehealth services, and a technical assistance program to support hospitals seeking to become rural emergency hospitals. Grant amounts are distributed to states based on the number of eligible rural hospitals in each state, and the bill allows State Offices of Rural Health to use funds for software, staff training, and operational improvements. The bill does not specify total funding amounts or implementation timelines beyond the 5-year duration for transformation grants, leaving budget details to be determined through the appropriations process.
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