AHA and Other Organizations Announce Release of Reform Policy Principles for Long-Term Care Hospitals

The groups are urging Congress to set up vital reforms to keep LTCHs running at peak levels of efficiency and effectiveness.
April 13, 2026
2 min read

Key Highlights

  • - The coalition includes major organizations like the American Hospital Association and the Federation of American Hospitals, advocating for sector stability.
  • - The principles emphasize the need for swift legislative action to prevent additional LTCH closures and maintain access to specialized care.
  • - Key policy proposals include expanding payment criteria for high-acuity patients and improving the accuracy of Medicare's Prospective Payment System.
  • - Consideration is being given to changing the 25-day average length of stay requirement to better reflect patient needs.
  • - The reforms aim to support the most severely ill Medicare patients who require extended, intensive hospitalization in specialized facilities.

A group of hospital stakeholders has announced the release of Long-Term Acute Care Hospital (LTCH) Reform Policy Principles.

The group includes organizations like the American Hospital Association, the Federation of American Hospitals, National Association of Long Term Hospitals, and Coalition of Long-Term Acute-Care Hospitals. The principles are meant to “guide and inform Congress as momentum builds to provide relief to LTCHs and the patients they serve.”

The groups urge Congress to “act swiftly” in the wake of longer-term reforms in order to “enact legislation that stabilizes the LTCH sector. Without timely action, additional LTCHs are likely to close, further limiting access to the specialized care that LTCHs provide to chronically and critically ill patients.”

LTCHs provide care for the “most severely ill Medicare patients who require extended hospitalization. These specialized hospitals offer a uniquely intensive level of care that is not generally available in other post-acute care settings. However, the current policy environment presents challenges to patients trying to access care and negatively impacts the financial stability of the nation’s LTCHs.”

Some of the policy principles include ensuring “access for certain high-acuity beneficiaries by expanding payment criteria;” improving accuracy of the LTCH Medicare Prospective Payment System (PPS); and consideration for “changing the 25-day average length of stay (ALOS) requirement.”

About the Author

Matt MacKenzie

Associate Editor

Matt is Associate Editor for Healthcare Purchasing News.

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