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CMS issues State Operations Manual Transmittal 251: revised CAH rural and distance evaluation guidance, new-hospital re-evaluation, decennial reviews from 2033

CMS issued State Operations Manual (Pub. 100-07) Transmittal 251 on November 4, 2026, effective and implemented the same day, revising section 2256A on critical access hospital (CAH) verification criteria. The guidance adds guidance on confirming necessary provider status (including types of evidence the CAH must supply), and directs CMS Locations to review existing CAHs' location and distance compliance when a new acute-care hospital is certified nearby. An affected CAH generally gets one year to reclassify as rural, convert to a hospital or rural emergency hospital, or face termination. Beginning in CY 2033 all existing CAHs will be evaluated every ten years.

Background

Under 42 CFR 485.610, every CAH, including necessary provider CAHs, must be located in a rural area or be treated as rural, and must meet one of three minimum driving-distance requirements: more than a 35-mile drive from any hospital or other CAH; more than a 15-mile drive in mountainous terrain or in areas with only secondary roads; or, for a CAH the State designated as a necessary provider before January 1, 2006, no minimum distance. The State Operations Manual gives two qualifications: the proximity of Indian Health Service (IHS) or Tribal hospitals or CAHs and other hospitals or CAHs to each other is not considered, and a CAH on an island that is entirely surrounded by water, has no other hospital or CAH and is not accessible by any roads is considered to meet the distance requirements.

Who this affects

Critical access hospitals, including necessary provider CAHs, and hospitals considering CAH conversion.

Why it matters

Inference: CAHs that rely on necessary provider designation should confirm they hold documentation of necessary provider designation made before January 1, 2006 and monitor new acute-care hospital certifications within their distance thresholds.

Required actions

  • No new deadline for all CAHs. A CAH that relies on necessary provider status is responsible for supplying evidence of that designation when CMS evaluates its distance status; if CMS cannot confirm the designation, the CAH may send supplementary evidence to the CMS Location within 60 days of the date of the CMS letter saying the distance requirements have not been met.

Scope and timing

Authority status
Guidance
Responsible owner
Regulatory Compliance (CAH)
Publication date
2026-11-04 (issued)
Effective date
2026-11-04
Implementation date
2026-11-04
Other dates
Decennial evaluations of all existing CAHs begin in CY 2033

Not established

No Quality Safety & Oversight (QSO) memo accompanied it in the QSO memo index (nearest related memo QSO-26-15-CAH, posted 2026-08-21). The Cutting Administrative Requirements for Excellence in Patient Care (CARE) proposed rule (CMS-3484-P) separately proposes CAH distance changes; the interaction was not analyzed.

Sources

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