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Senate Bill 505
By: Senators Tillery of the 19th, Cowsert of the 46th, Watson of the 1st, Dolezal of the 27th,
Gooch of the 51st and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 1 of Chapter 7 of Title 31 of the Official Code of Georgia Annotated,
1
relating to regulation of hospitals and related institutions, so as to revise provisions relating2
to required publication by hospital of certain financial documents on its website; to provide3
for uniform reporting requirements; to require hospitals to annually provide the Uniform4
Resource Locator for the webpage containing the financial documents; to provide for5
increased penalties for noncompliance; to provide for related matters; to provide for an6
effective date; to repeal conflicting laws; and for other purposes.7
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
SECTION 1.9
Article 1 of Chapter 7 of Title 31 of the Official Code of Georgia Annotated, relating to10
regulation of hospitals and related institutions, is amended by revising Code Section 31-7-22,11
relating to required publication by hospital of certain documentation on website, updating,12
penalty for noncompliance, enforcement, and individual criminal penalty, as follows:13
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"31-7-22.
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(a) As used in this Code section, the term 'hospital' means a nonprofit hospital, a hospital15
owned or operated by a hospital authority, or a nonprofit corporation formed, created, or16
operated by or on behalf of a hospital authority.17
(b) Each
Beginning October 1, 2019, each hospital in this state shall be required to post18
and maintain a link in a prominent location on the main page of its website to the most19
recent version of each of the following documents in the format and manner established by20
the department pursuant to subsection (d.1) of this Code section:21
(1) Federal related disclosures:22
(A) Copies of audited financial statements that are general purpose financial23
statements, which express the unqualified opinion of an independent certified public24
accounting firm for the most recently completed fiscal year for the hospital; each of its25
affiliates, except those affiliates that were inactive or that had an immaterial amount of26
total assets; and the hospital's parent corporation that include the following:27
(i) A PDF version of all audited financial statements;28
(ii) A note in the hospital's audited financial statements that identifies individual29
amounts for such hospital's gross patient revenue, allowances, charity care, and net30
patient revenue;31
(iii) Audited consolidated financial statements for hospitals with subsidiaries and32
consolidating financial statements that at a minimum contain a balance sheet and33
statement of operations and that provide a breakout of the hospital's and each34
subsidiary's numbers with a report from independent accountants on other financial35
information; and36
(iv) Audited consolidated financial statements for the hospital's parent corporation37
and consolidating financial statements that at a minimum contain a balance sheet and38
statement of operations and that provide a breakout of the hospital's and each39
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affiliate's numbers with a report from independent accountants on other financial
40
information; and41
(B) A copy
Copy of audited Internal Revenue Service Form 990, including Schedule42
H for hospitals and other applicable attachments; provided, however, that for any43
hospital not required to file IRS Form 990, the department shall establish and provide44
a form that collects the same information as is contained in Internal Revenue Service45
Form 990, including Schedule H for hospitals, as applicable; and46
(2) Georgia supplemental disclosures:47
(A) The Copy of the hospital's completed annual hospital questionnaire, as required by48
the department;49
(B) The community benefit report prepared pursuant to Code Section 31-7-90.1, if50
applicable;51
(C) The disproportionate share hospital survey, if applicable;52
(D) Listing of all real property holdings of the hospital, including the location and size,53
parcel ID number, purchase price, current use, and any improvements made to such54
property;55
(E) Listing of any ownership or interest the nonprofit hospital has in any joint venture,56
partnership, subsidiary holding company, or captive insurance company; where any57
such entity is domiciled; and the value of any such ownership or interest;58
(F) Listing of any bonded indebtedness, outstanding loans, and bond defaults, whether59
or not in forbearance; and any bond disclosure sites of the hospital;60
(G) A report that identifies by purpose, the ending fund balances of the net assets of61
the hospital and each affiliate as of the close of the most recently completed fiscal year,62
distinguishing between donor permanently restricted, donor temporarily restricted,63
board restricted and unrestricted fund balances. The hospital's interest in its foundation64
shall be deducted from the foundation's total fund balance;65
(H) All Copy of all going concern statements regarding the hospital;66
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(I) The most recent legal chart of corporate structure, including the hospital, each of
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its affiliates and subsidiaries, and its parent corporation, duly dated;68
(J) A report
Report listing the salaries and fringe benefits for the ten highest paid69
administrative positions in the hospital. Each position shall be identified by its70
complete, unabbreviated title. Fringe benefits shall include all forms of compensation,71
whether actual or deferred, made to or on behalf of the employee, whether full or72
part-time;73
(K) Evidence of accreditation by accrediting bodies, including, but not limited to, the74
Joint Commission and DNV; and75
(L) The Copy of the hospital's policies regarding the provision of charity care and76
reduced cost services to the indigent, excluding medical assistance recipients, and its77
debt collection practices.78
(c) Each hospital in this state shall annually update the documents in the links posted79
pursuant to subsection (b) of this Code section on no later than July 1 of each year or more80
frequently at its discretion. Noncurrent documents shall remain posted and accessible on81
the hospital's website indefinitely.82
(d) All documents listed in subsection (b) of this Code section shall be prepared in83
accordance with generally accepted accounting principles, as applicable.84
(d.1) No later than December 31, 2024, the department shall establish a uniform template85
and criteria for reporting the documents required to be posted pursuant to this Code section. 86
No later than July 1, 2025, all hospitals shall implement and utilize such uniform template87
and reporting criteria.88
(e) Each hospital in this state shall annually provide to the department the Uniform89
Resource Locator to the link required pursuant to subsection (b) of this Code section no90
later than August 1 each year. The department shall also post a and maintain an updated91
link in a prominent location on its website to the documents listed in subsection (b) of this92
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Code section for containing the Uniform Resource Locator for each hospital in this state93
as provided by each such hospital pursuant to this subsection.94
(f) Any hospital that fails to post the documents required pursuant to subsection (b)95
comply with any provision of this Code section within 30 days of the dates required in this96
Code section shall be suspended from receiving any state funds or any donations pursuant97
to Code Section 48-7-29.20 funds administered by the state; provided, however, that the98
department shall provide a hospital 30 days' notice of any deficiency and opportunity to99
correct such deficiency prior to any suspension of funds pursuant to this subsection.100
(g) The department shall have jurisdiction to enforce this Code section and to promulgate101
rules and regulations required to administer this Code section.102
(h) Any person who knowingly and willfully includes false, fictitious, or fraudulent103
information in any documents required to be posted pursuant to this Code section shall be104
subject to a violation of Code Section 16-10-20."105
SECTION 2.106
This Act shall become effective upon its approval by the Governor or upon its becoming law107
without such approval.108
SECTION 3.109
All laws and parts of laws in conflict with this Act are repealed.110
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