Catastrophic Specialty Hospital Act of 2025

The Catastrophic Specialty Hospital Act of 2025 establishes a new Medicare payment designation for long-term care hospitals specializing in spinal cord injury and acquired brain injury rehabilitation. To qualify, hospitals must meet strict criteria over three years, including 80% of discharges for these conditions, a full continuum of inpatient/outpatient care, minimum annual discharge thresholds (175+ for each condition), 30% out-of-state patients, and demonstrated neurorehabilitation research commitments. Designated hospitals would receive Medicare payments outside the standard long-term care hospital payment system, exempting them from existing billing rules. This directly affects eligible specialized hospitals and modifies Medicare’s payment structure for these specific facilities.