Catastrophic Specialty Hospital Act of 2025

New Medicare designation for spinal and brain injury hospitals

This bill would let HHS label some long-term care hospitals as catastrophic specialty hospitals. To qualify, at least 80% of discharges over a 3-year look-back would be for spinal cord or acquired brain injury. Each year in that period, the hospital would need at least 175 discharges for spinal cord injury and at least 175 for acquired brain injury. Hospitals would need to offer inpatient and outpatient care with a long-term wellness focus, draw at least 30% of patients from out of state, and show neurorehabilitation research or training activity. While labeled, Medicare would pay these hospitals outside the usual long-term care hospital payment system for a 3-year period, with a 60-day window to submit more information if redesignation is at risk.