HB1127

This bill creates the 'Rural Emergency Hospital Act' to establish a new licensure category for rural hospitals in Arkansas. It enables qualifying rural hospitals to receive federal healthcare reimbursements by transitioning to a 'Rural Emergency Hospital' (REH) model, which focuses on emergency services and outpatient care rather than traditional inpatient services. The bill authorizes the Arkansas Department of Health to oversee the licensure, set standards, and establish an annual fee for these facilities. It mandates that health benefit plans cover services performed at an REH if they would be covered at a general hospital and requires the Arkansas Medicaid Program to reimburse REHs at a rate comparable to or better than critical access hospitals. Furthermore, the act provides limited antitrust immunity for entities transitioning to this model and includes an emergency clause for immediate implementation to address the financial distress of rural healthcare providers.