SB 268 HEALTH FACILITY VIABILITY FUND

Sen Pete Campos

Actions: [6] SCC/SHPAC/SFC-SCC-germane-SHPAC [7] DP-SFC

Scheduled: Not Scheduled

 SB 268 appropriates $70,000,000 with an annual cap of $7,000,000 for each grant  to hospitals in need for services in areas of need. Funds may be used for operations, debt service, Medicaid match, and medical malpractice.  

 Synopsis: SB 268 relates to health care by creating the Health Facility Viability Fund and providing financial assistance grants to health facilities  and making an appropriation.

Analysis: Senate Bill 268 (SB 268) The, Health Facility Viability Fund, is created as a non-reverting fund in the state treasury. The fund consists of appropriations, gifts, grants, donations, income from investment of the fund and other revenue credited to the fund. The Health Care Authority Department shall administer the fund, and expenditures from the fund shall be by warrant of the Secretary of Finance and Administration pursuant to vouchers signed by the Secretary of Health Care Authority or the Secretary's authorized representative.
A single grant may not exceed seven million dollars ($7,000,000), and a single grant period may not extend beyond twelve months. Grants may be used to subsidize a facility's costs associated with: (1) general operation; (2) operational debt; (3) medical malpractice and other insurance; (4) surcharges required pursuant to the Medical Malpractice Act; (5) assessments levied by the state to secure Medicaid matching funds, to the extent permitted by federal law; and (6) other needs and expenses approved by the Department.
The Health Care Authority will promulgate rules for the form and manner of the grant application, agreement, reporting and audit.
An eligible facility shall submit a solvency plan that includes specific cost containment measures and adequate documentation that demonstrates that the facility is at risk of closure or at risk of a significant reduction of services with the application.
A health facility is eligible to apply for a grant if it: (1) is a licensed public or private general or special hospital, outpatient clinic, crisis triage center or freestanding birth center; (2) is an enrolled Medicaid provider actively serving Medicaid recipients; and (3) is located and operates in a medically underserved area of the state.
The Health Care Authority Department shall prioritize the applications of facilities that demonstrate the greatest need. The Authority upon receipt of an application will conduct a financial assessment of the facility, evaluate the workforce and the service capabilities , and evaluate the service needs of the service area and the public health service impact on the area.
An appropriation of seventy million dollars from the General Fund to the Health Facilities Viability Fund for expenditure in fiscal year 2025 and subsequent fiscal years to provide for financial assistance grants to eligible health facilities to sustain, recover and expand services.