Hospitals and telehealth get boost in spending deal: Two-minute drill

President Trump and Congress put the finishing touches on a federal spending package, and it offers some welcome news for hospitals and health systems.

First, the $1.2 trillion spending bill ensures there won’t be a protracted government shutdown that potentially poses headaches for health systems.

But the bill includes some welcome news with the extension of federal flexibilities for telehealth programs.

The package includes a two-year extension for telehealth programs, running through 2027. Healthcare groups have been urging lawmakers and the White House to sign off on a multi-year extension for some time. But since the end of 2024, telehealth waivers have been tied to short-term spending bills. When the government shut down last fall, telehealth programs across the nation suffered disruptions.

Health systems also secured an even bigger win for hospital-at-home programs. The package offers a five-year extension for home hospital programs. It may lead more health systems to launch hospital-at-home programs, or expand existing programs because they now know they have some certainty in terms of federal support.

The spending package also includes extensions of Medicare programs that offer vital support for rural hospitals. And the legislation prevents cuts to a Medicaid program that offers funding for hospitals with a high percentage of Medicaid patients.

• Read more: What the federal spending package does for hospitals: Questions and answers