In a new analysis, the Bipartisan Policy Center (BPC) examines the progress of a new provider type in the Medicare payment system that allows certain rural hospitals to avoid closure and continue serving their communities. Since January 2023, 30 hospitals have converted to the model that limits services to emergency and outpatient care. The report highlights factors preventing facilities from choosing this option despite financial pressures and offers policy recommendations for making the REH a sustainable care delivery option.