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Questions

What is a Rural Emergency Hospital in North Carolina?

A Rural Emergency Hospital (REH) is a Medicare provider type, created in 2023, that keeps a 24-hour emergency department and outpatient services but no inpatient beds. North Carolina has none: CMS's November 2026 hospital file lists 49 nationwide and none in the state. North Carolina law, G.S. 131E-78.3, sets the steps a hospital must take to convert.

What a Rural Emergency Hospital does

Congress created Rural Emergency Hospitals in the Consolidated Appropriations Act, 2021, signed December 27, 2020, to respond to rural hospital closures. CMS's rules took effect January 1, 2023. Under 42 CFR Part 485, Subpart E, an REH:

  • provides emergency department services, observation care and other outpatient services;
  • keeps an annual average length of stay of 24 hours or less per patient;
  • doesn't provide inpatient care, except in a separately licensed skilled nursing unit;
  • must be licensed by the state as an REH or meet the state's licensing standards (42 CFR 485.508).

Medicare pays an REH a monthly facility payment plus 5% above the standard outpatient rate. Your Part B copayment is figured without that 5% (42 CFR 419.92), so you don't pay extra for the hospital's status.

The picture in North Carolina

CMS's Hospital General Information file, released November 12, 2026, lists no Rural Emergency Hospitals in North Carolina, out of 49 nationwide. The state has prepared for them, though. North Carolina's hospital licensing law counts a CMS-designated REH as a hospital (G.S. 131E-76), and G.S. 131E-78.3, added in 2023, requires a hospital that applies for federal REH designation to:

  1. Notify the state and county. Tell NCDHHS and the board of county commissioners when it applies.
  2. Submit a plan. Give the county commissioners an assessment of the county's current and future health care needs and how the REH would meet them.
  3. Hold a public hearing in the county, with notice in a local newspaper at least 15 days ahead, where anyone interested can be heard.

The conversion isn't subject to North Carolina's certificate-of-need review. If a hospital near you plans to convert, you'll have a chance to speak.

Meanwhile, rural North Carolina relies on its 20 Critical Access Hospitals.

Critical Access HospitalRural Emergency Hospital
Inpatient bedsUp to 25None
24-hour emergency departmentYesYes
Average length-of-stay limit96 hours24 hours
Number in North Carolina (CMS, Nov. 2026)200

What it means for you

If your local hospital ever converts, your Medicare still covers emergency and outpatient care there. If you need to be admitted, you would be transferred. If you have Medicare Advantage, check that the hospital you'd be transferred to is in your plan's network; emergency care is covered in or out of network. More in Medicare in rural and mountain North Carolina, or request a call from a licensed insurance agent.

What is a Critical Access Hospital?

North Carolina's 20 small rural hospitals.

Does Medicare pay for air ambulance?

Transfers to larger hospitals.

Medicare options in the NC mountains

Plans and networks in the west.

Sources

More questions in this guide

Part of the guide: Medicare in Rural and Mountain North Carolina · All questions

Frequently asked questions

What's the difference between a Rural Emergency Hospital and a Critical Access Hospital?

A Critical Access Hospital keeps up to 25 inpatient beds for short stays. A Rural Emergency Hospital has no inpatient beds (except a separately licensed skilled nursing unit) and transfers patients who need to be admitted.

Do I pay more at a Rural Emergency Hospital?

No. Under 42 CFR 419.92, Medicare pays an REH 5% more than the standard hospital outpatient rate, but your copayment is based on the standard rate, without that increase.

Which North Carolina hospitals could become Rural Emergency Hospitals?

Under 42 CFR 485.506, only facilities that on December 27, 2020, were Critical Access Hospitals or rural hospitals with 50 or fewer beds can convert.

Licensed insurance agents for North Carolina

These independent insurance agents are licensed in North Carolina and work with Benefits Life, the publisher of this site. When they enroll you in a plan, the agent and Benefits Life may be paid by the insurance company. Learn more.

Casey Gilley

Casey Gilley

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Independent licensed insurance agent in North Carolina

Chapel Hill · English

Steven Graves

Steven Graves

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Independent licensed insurance agent in North Carolina

Southern Pines · English

Tonya Dorman

Tonya Dorman

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Independent licensed insurance agent in North Carolina

Colorado Springs, CO · English

Wendi Schoonover

Wendi Schoonover

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Independent licensed insurance agent in North Carolina

Tulsa, OK

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