To reauthorize the rural health care transition grant program established under the Omnibus Budget Reconciliation Act of 1987, to direct the Secretary of Health and Human Services to give preference in making grants under such program to hospitals that establish consortia with other providers in the communities in which the hospitals are located, and to revise the frequency of the Secretary's reports on the program to Congress.

Amends the Omnibus Budget Reconcilitation Act of 1987 to: (1) reauthorize the rural health care transition grant program through FY 1997; (2) direct the Secretary of Health and Human Services to give preference in making grants under such program to hospitals that establish consortia with other providers in the communities in which the hospitals are located; and (3) revise the frequency of the Secretary's reports on the program to the Congress from every six months to every 12 months.