S 1087 — Rebuild America’s Health Care Schools Act of 2025

Summary

Rebuild America’s Health Care Schools Act of 2025This bill allows hospitals to receive reimbursement under Medicare for certain costs associated with training nursing and allied health students in settings other than the hospital itself. Currently, hospitals may receive reimbursement under Medicare for the reasonable costs associated with training nursing and allied health students if certain conditions are met; the criteria vary depending on whether the students are enrolled in an educational program that is operated by the hospital or another entity. If the students are part of a program that is operated by another entity, the training must occur at the hospital itself or in areas immediately surrounding the hospital in order to qualify for reimbursement (among other requirements). The bill allows hospitals to receive reimbursement for these costs if the training is conducted at an entity that is related to the hospital (i.e., common ownership or control).The bill requires the Centers for Medicare & Medicaid Services (CMS) to update regulations to reflect these changes. Additionally, the CMS may not recoup or reduce payments to hospitals with respect to costs that are allowed under the bill and must refund any such recoupments or reductions that occurred during the six-year period prior to the bill's enactment.

Bill Text

• Introduced Introduced in Senate Current html March 14, 2025

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill amends the Social Security Act to allow hospitals to include additional direct and indirect costs related to nursing and allied health education programs in determining reasonable costs under Medicare.

• 42 U.S.C. 1395x(v)(1)

  (X)(i) In determining such reasonable costs for nursing and allied health education furnished by a hospital, beginning with respect to cost reporting periods beginning on or after the date of the enactment of the Rebuild America's Health Care Schools Act of 2025, the Secretary shall include as reasonable costs all direct and indirect costs incurred by a hospital participating in a nursing and allied health education program licensed by State law or accredited by a national or regional professional organization, including costs that-- (I) were directly incurred by the hospital; (II) were allocated to the hospital by a related entity holding the applicable State license or accreditation by a national or regional professional organization; (III) were associated with the training or advanced clinical training of a program participant at the hospital or at a related entity; (IV) were associated with contracts to provide for faculty for the program when such faculty are employed by an educational institution that is not a related entity; or (V) were associated with shared services, such as shared payroll and administrative services, to support the operation of an approved nursing or allied health education program, provided by an educational institution or a clinical site that is a related entity.

  This addition allows hospitals to claim a wider range of costs related to nursing and allied health education under Medicare reimbursement.

• 42 U.S.C. 1395x(v)(1)

  (ii) For purposes of clause (i), the term `related entity' means, with respect to a hospital, any entity that is related by common ownership or control to-- (I) the hospital itself; or (II) an entity-- (aa) in which the hospital (or another entity that is a related entity with respect to the hospital) is the sole corporate member; (bb) that is the sole corporate member of the hospital; (cc) that is part of the same legal entity as the hospital; or (dd) that shares a board with the hospital.

  This provides a definition for 'related entity,' clarifying what entities can be considered in the context of cost reimbursement for educational programs.

• 42 U.S.C. 1395c et seq.

  Beginning on the date of the enactment of this section, the Secretary of Health and Human Services may not recoup or reduce payments made to a hospital under part A of title XVIII of the Social Security Act for costs related to an approved nursing or allied health education program that are included on the Medicare cost report for such hospital if such costs would be allowable after the amendments made by subsection (a) take effect.

  This prohibits the recoupment of certain costs associated with nursing or allied health education programs, protecting hospitals from payment reductions for these costs.

• 42 U.S.C. 1395c et seq.

  If, during the 6-year period ending on the date of the enactment of this section, the Secretary recouped or reduced payments made to a hospital under such part A for costs described in paragraph (1), the Secretary shall refund to the hospital the amount so recouped or reduced.

  This ensures hospitals receive refunds for previously recouped funds related to nursing or allied health education program costs, reinforcing financial support for these programs.

Action History

1. March 14, 2025

   Introduced in Senate

2. March 14, 2025

   Read twice and referred to the Committee on Finance.

Sponsors

• Amy Klobuchar · Primary
• Thomas Tillis · Cosponsor

Subjects