Catastrophic Specialty Hospital Act of 2025

S 2628, the Catastrophic Specialty Hospital Act of 2025, creates a new Medicare payment designation for long-term care hospitals specializing in spinal cord injury and acquired brain injury rehabilitation. Hospitals meeting strict criteria - such as having at least 80% of discharges for these conditions over three years, 175+ annual discharges per condition, 30% out-of-state patients, and research commitments - will receive special Medicare payments instead of standard rates. This directly affects qualifying specialized hospitals, changing how Medicare reimburses them for care. The designation lasts three years and requires annual renewal based on continued compliance with the criteria.