24 SB 505/FA
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
AS PASSED SENATE
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
community benefits; to provide for increased penalties for noncompliance; to provide for6
related matters; to provide for an effective date; to repeal conflicting laws; and for other7
purposes.8
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
SECTION 1.10
Article 1 of Chapter 7 of Title 31 of the Official Code of Georgia Annotated, relating to11
regulation of hospitals and related institutions, is amended by revising Code Section 31-7-22,12
relating to required publication by hospital of certain documentation on website, updating,13
penalty for noncompliance, enforcement, and individual criminal penalty, as follows:14
"31-7-22.15
(a) As used in this Code section, the term:
16
S. B. 505
- 1 - 24 SB 505/FA
(1) 'Community benefit' means:17
(A) In counties with a population of 100,000 or less, charity care and government18
sponsored indigent healthcare at a level that is reasonable in relation to the community19
needs, as determined through the community needs assessment, the available resources20
of the hospital or hospital system, and the tax exempt benefits received by the hospital21
or hospital system; and22
(B) In counties with a population of more than 100,000:23
(i) Charity care and government sponsored indigent healthcare provided in an amount24
equal to at least 100 percent of the hospital's or hospital system's tax exempt benefits,25
excluding federal income tax; or26
(ii) Charity care provided in a combined amount equal to at least 5 percent of the27
hospital's or hospital system's net patient revenue.28
(2) 'Hospital' 'hospital' means a nonprofit hospital, a hospital owned or operated by a29
hospital authority, or a nonprofit corporation formed, created, or operated by or on behalf30
of a hospital authority.31
(b) Each Beginning October 1, 2019, each hospital in this state shall be required to post32
and maintain a link in a prominent location on the main page of its website to the most33
recent version of each of the following documents in the format and manner established by34
the department pursuant to subsection (d.1) of this Code section:35
(1) Federal related disclosures:36
(A) Copies of audited financial statements that are general purpose financial37
statements, which express the unqualified opinion of an independent certified public38
accounting firm for the most recently completed fiscal year for the hospital; each of its39
affiliates, except those affiliates that were inactive or that had an immaterial amount of40
total assets; and the hospital's parent corporation that include the following:41
(i) A PDF version of all audited financial statements;42
S. B. 505
- 2 - 24 SB 505/FA
(ii) A note in the hospital's audited financial statements that identifies individual
43
amounts for such hospital's gross patient revenue, allowances, charity care, and net44
patient revenue;45
(iii) Audited consolidated financial statements for hospitals with subsidiaries and46
consolidating financial statements that at a minimum contain a balance sheet and47
statement of operations and that provide a breakout of the hospital's and each48
subsidiary's numbers with a report from independent accountants on other financial49
information; and50
(iv) Audited consolidated financial statements for the hospital's parent corporation51
and consolidating financial statements that at a minimum contain a balance sheet and52
statement of operations and that provide a breakout of the hospital's and each53
affiliate's numbers with a report from independent accountants on other financial54
information; and55
(B) A copy
Copy of audited Internal Revenue Service Form 990, including Schedule56
H for hospitals and other applicable attachments; provided, however, that for any57
hospital not required to file IRS Form 990, the department shall establish and provide58
a form that collects the same information as is contained in Internal Revenue Service59
Form 990, including Schedule H for hospitals, as applicable; and60
(2) Georgia supplemental disclosures:61
(A) The Copy of the hospital's completed annual hospital questionnaire, as required by62
the department;63
(B) The community benefit report prepared pursuant to Code Section 31-7-90.1, if64
applicable;65
(C) The disproportionate share hospital survey, if applicable;66
(D) Listing of all real property holdings of the hospital, including the location and size,67
parcel ID number, purchase price, current use, and any improvements made to such68
property;69
S. B. 505
- 3 - 24 SB 505/FA
(E) Listing of any ownership or interest the nonprofit hospital has in any joint venture,
70
partnership, subsidiary holding company, or captive insurance company; where any71
such entity is domiciled; and the value of any such ownership or interest;72
(F) Listing of any bonded indebtedness, outstanding loans, and bond defaults, whether73
or not in forbearance; and any bond disclosure sites of the hospital;74
(G) A report that identifies by purpose, the ending fund balances of the net assets of75
the hospital and each affiliate as of the close of the most recently completed fiscal year,76
distinguishing between donor permanently restricted, donor temporarily restricted,77
board restricted and unrestricted fund balances. The hospital's interest in its foundation78
shall be deducted from the foundation's total fund balance;79
(H) All
Copy of all going concern statements regarding the hospital;80
(I) The most recent legal chart of corporate structure, including the hospital, each of81
its affiliates and subsidiaries, and its parent corporation, duly dated;82
(J) A report Report listing the salaries and fringe benefits for the ten highest paid83
administrative positions in the hospital. Each position shall be identified by its84
complete, unabbreviated title. Fringe benefits shall include all forms of compensation,85
whether actual or deferred, made to or on behalf of the employee, whether full or86
part-time;87
(K) Evidence of accreditation by accrediting bodies, including, but not limited to, the88
Joint Commission and DNV; and89
(L) The Copy of the hospital's policies regarding the provision of charity care and90
reduced cost services to the indigent, excluding medical assistance recipients, and its91
debt collection practices.92
(c) Each hospital in this state shall annually update the documents in the links posted93
pursuant to subsection (b) of this Code section on no later than July 1 of each year or more94
frequently at its discretion. Noncurrent documents shall remain posted and accessible on95
the hospital's website indefinitely.96
S. B. 505
- 4 - 24 SB 505/FA
(d) All documents listed in subsection (b) of this Code section shall be prepared in
97
accordance with generally accepted accounting principles, as applicable.98
(d.1) No later than December 31, 2024, the department shall establish a uniform template
99
and criteria for reporting the documents required to be posted pursuant to this Code section. 100
No later than July 1, 2025, all hospitals shall implement and utilize such uniform template101
and reporting criteria.102
(e) Each hospital in this state shall annually provide to the department the Uniform103
Resource Locator to the link required pursuant to subsection (b) of this Code section no104
later than August 1 each year. The department shall also post a and maintain an updated105
link in a prominent location on its website to the documents listed in subsection (b) of this106
Code section for containing the Uniform Resource Locator for each hospital in this state107
as provided by each such hospital pursuant to this subsection.108
(f) Any hospital that fails to post the documents required pursuant to subsection (b)109
provide a community benefit or comply with any provision of this Code section within 30110
days of the dates required in this Code section within 30 days of the dates required in this111
Code section shall be suspended from receiving any state funds or any donations pursuant112
to Code Section 48-7-29.20 funds administered by the state; provided, however, that the113
department shall provide a hospital 30 days' notice of any deficiency and opportunity to114
correct such deficiency prior to any suspension of funds pursuant to this subsection.115
(g) The department shall have jurisdiction to enforce this Code section and to promulgate116
rules and regulations required to administer this Code section.117
(h) Any person who knowingly and willfully includes false, fictitious, or fraudulent118
information in any documents required to be posted pursuant to this Code section shall be119
subject to a violation of Code Section 16-10-20."120
SECTION 2.121
S. B. 505
- 5 - 24 SB 505/FA
This Act shall become effective upon its approval by the Governor or upon its becoming law
122
without such approval.123
SECTION 3.124
All laws and parts of laws in conflict with this Act are repealed.125
S. B. 505
- 6 -