Rural hospitals are closing at an alarming rate across the country, often because they can't cover their costs with current Medicare rates. When a local hospital closes, people have to drive much further for emergencies, which can be a matter of life and death. This bill attempts to fix a 'vicious cycle' where low local wages lead to low Medicare payments, which in turn prevents the hospital from ever being able to raise wages or upgrade facilities.

By making this policy law, Congress is providing long-term certainty to healthcare providers. Without this bill, the current temporary boost for these hospitals could be canceled by future administrations, leading to a sudden financial crisis for hundreds of medical facilities that serve millions of Americans.