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U.S. Congressman Don Davis (NC-01) has announced new legislation that would support the reopening of Martin General Hospital.

The Rural Emergency Hospital Financial Stability Act would provide support to healthcare facilities facing closure or those able to reopen by increasing Medicaid reimbursements for Rural Emergency Hospitals (REHs) to the outpatient hospital, rather than the rural health clinic rate. Without providing this financial stability, REHs would face long-term insolvency, particularly in communities like Martin County, where Medicaid reimbursements represent the highest share of their total revenue. The legislation would also reduce Medicaid expenditures because patients will no longer have to always travel long distances to seek care at inpatient facilities like ECU Health in Greenville or Washington, and could instead receive outpatient services at a reopened Martin General.

“Supporting the reopening of Martin General by ensuring financial stability for all Rural Emergency Hospitals is essential,” said Congressman Davis. “In communities with high Medicaid populations, rural hospitals are often overwhelmed, despite their best efforts to stay open. If we provide a higher Medicaid reimbursement rate for Rural Emergency Hospitals, we can help patients get the care they desperately need while creating healthcare jobs in communities that need it most.”

Martin General Hospital, which served the county for more than 50 years, was closed nearly two years ago, when Williamston Hospital Corporation filed for Chapter 7 bankruptcy. After a long and exhausting process, ECU Health was selected following a request for proposals from Martin County on February 13, 2025, to reestablish essential health care services.

“ECU Health appreciates Congressman Davis introducing legislation that will support Rural Emergency Hospitals in qualifying for higher Medicaid reimbursement rates,” said Brian Wudkwych, manager of public and government affairs with ECU Health. “This is an important step toward resolving one of the contingencies in ECU Health’s proposal to re-establish essential health care services in Martin County. ECU Health remains committed to advocating on behalf of the rural communities we proudly serve.”

The two contingencies, as outlined by ECU Health during a public hearing on June 4, 2025, would ensure the long-term sustainability of health care access. 

1. State financial support to transition the Rural Emergency Hospital to a newly constructed Rural Care Center, given the age and condition of the existing facility in Martin County.

     2. State financial support to modernize and expand inpatient capacity at ECU Health Beaufort Hospital – a Hill-Burton Act facility built in 1958 – which is critical, given the Rural Emergency Hospital model proposed for Martin County cannot have long-term inpatient beds. 

“This bipartisan legislation takes a commonsense step to ensure REHs are treated fairly under Medicaid—just as they are under Medicare—so they can continue providing timely, local care without being financially hamstrung by bureaucratic gaps,” said Congressman Jack Bergman, Republican, Michigan.  “Rural healthcare shouldn’t be at the mercy of inconsistent reimbursement rules, and I’m proud to support a fix that brings clarity, stability, and fairness to the REH model.”

The press conference to announce the legislation was held on Monday, June 30, in front of Martin General Hospital.