This bill creates a new category of hospitals called "catastrophic specialty hospitals" that focus on treating patients with spinal cord injuries and acquired brain injuries. These designated hospitals would get special payment rules under Medicare, allowing them to receive payments outside the normal cost-based system that applies to other long-term care hospitals.

To qualify for this special designation, a hospital must meet several strict requirements. At least 80 percent of its patients over a three-year period must have spinal cord or brain injuries. The hospital must treat at least 175 patients with spinal cord injuries and 175 with brain injuries each year. It also needs to offer a full range of services including inpatient care, outpatient care, and long-term wellness programs. Additionally, at least 30 percent of patients must come from outside the hospital's home state, showing it serves a regional or national patient population.

The bill also requires these hospitals to demonstrate a commitment to research and education in neurorehabilitation. This could mean employing dedicated research staff, publishing findings in medical journals, running training programs for doctors, or maintaining medical residency programs in relevant specialties. Once a hospital receives this designation, it remains valid for three years, after which the hospital must reapply and prove it still meets all the criteria. If a hospital fails to maintain these standards, it has 60 days to provide additional evidence before losing its special status.