§2. Assistance for distressed rural health care facilities
This section establishes authority under new section 310J of subtitle A of the Consolidated Farm and Rural Development Act for rural health care facilities—including hospitals, behavioral health facilities, clinics (including mobile), home health agencies, and long-term care facilities in rural areas (population of 50,000 or fewer, not urbanized or adjacent/contiguous to a city of more than 50,000)—to use assistance provided under section 306(a) (community facility loans and grants) or section 310B (rural business or economic development assistance) to (1) refinance debt obligations; (2) update telehealth, equipment, or online databases; or (3) support ancillary needs, including operating expenses and reserve funds.
Assistance is available only if it (1) preserves access to health services in a rural community; (2) meaningfully improves the facility's financial position; and (3) meets Rural Development Agency requirements for financial feasibility and security. (Thus, the authority targets financially strained facilities essential to rural health access.)
The section further authorizes the Secretary to waive the credit test requirement of section 302(a)(1)(D) (i.e., inability to obtain credit elsewhere) for such facilities that are insolvent or located in a persistent poverty area (poverty rate of 20% or more for four consecutive periods approximately 10 years apart, spanning approximately 30 years), socially vulnerable community, or distressed area (as determined by the Secretary).
The amendments take effect 6 months after enactment.