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The House Committee on Health offers the following substitute to SB 505:
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
"31-7-22.14
(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
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operated by or on behalf of a hospital authority publicly or privately owned hospital which17
is licensed to operate by the department pursuant to this article.18
(b) Each Beginning October 1, 2019, each hospital in this state shall be required to post19
and maintain a link in a prominent location on the main page of its website to the most20
recent version of each of the following documents in the format and manner established by21
the department pursuant to subsection (d.1) of this Code section:22
(1) Federal related disclosures:23
(A) Copies of audited financial statements that are general purpose financial24
statements, which express the unqualified opinion of an independent certified public25
accounting firm for the most recently completed fiscal year for the hospital; each of its26
affiliates, except those affiliates that were inactive or that had an immaterial amount of27
total assets; and the hospital's parent corporation that include the following:28
(i) A PDF version of all audited financial statements;29
(ii) A note in the hospital's audited financial statements that identifies individual30
amounts for such hospital's gross patient revenue, allowances, charity care, and net31
patient revenue;32
(iii) Audited consolidated financial statements for hospitals with subsidiaries and33
consolidating financial statements that at a minimum contain a balance sheet and34
statement of operations and that provide a breakout of the hospital's and each35
subsidiary's numbers with a report from independent accountants on other financial36
information; and37
(iv) Audited consolidated financial statements for the hospital's parent corporation38
and consolidating financial statements that at a minimum contain a balance sheet and39
statement of operations and that provide a breakout of the hospital's and each40
affiliate's numbers with a report from independent accountants on other financial41
information; and42
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(B) A copy Copy of audited Internal Revenue Service Form 990, including Schedule43
H for hospitals and other applicable attachments; provided, however, that for any44
hospital not required to file IRS Form 990, the department shall establish and provide45
a form that collects the same information as is contained in Internal Revenue Service46
Form 990, including Schedule H for hospitals, as applicable; and47
(C) A copy of Securities and Exchange Commission Form 10-K Annual Report for any48
publicly owned hospital; and49
(2) Georgia supplemental disclosures:50
(A) The Copy of the hospital's completed annual hospital questionnaire, as required by51
the department;52
(B) The community benefit report prepared pursuant to Code Section 31-7-90.1, if53
applicable;54
(C) The disproportionate share hospital survey, if applicable;55
(D) Listing of all real property holdings of the hospital, including the location and size,56
parcel ID number, purchase price, current use, and any improvements made to such57
property;58
(E) Listing of any ownership or interest the nonprofit hospital has in any joint venture,59
partnership, subsidiary holding company, or captive insurance company; where any60
such entity is domiciled; and the value of any such ownership or interest;61
(F) Listing of any bonded indebtedness, outstanding loans, and bond defaults, whether62
or not in forbearance; and any bond disclosure sites of the hospital;63
(G) A report that identifies by purpose, the ending fund balances of the net assets of64
the hospital and each affiliate as of the close of the most recently completed fiscal year,65
distinguishing between donor permanently restricted, donor temporarily restricted,66
board restricted and unrestricted fund balances. The hospital's interest in its foundation67
shall be deducted from the foundation's total fund balance;68
(H) All Copy of all going concern statements regarding the hospital;69
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(I) The most recent legal chart of corporate structure, including the hospital, each of70
its affiliates and subsidiaries, and its parent corporation, duly dated;71
(J) A report Report listing the salaries and fringe benefits for the ten highest paid72
administrative positions in the hospital. Each position shall be identified by its73
complete, unabbreviated title. Fringe benefits shall include all forms of compensation,74
whether actual or deferred, made to or on behalf of the employee, whether full or75
part-time;76
(K) Evidence of accreditation by accrediting bodies, including, but not limited to, the77
Joint Commission and DNV; and78
(L) The Copy of the hospital's policies regarding the provision of charity care and79
reduced cost services to the indigent, excluding medical assistance recipients, and its80
debt collection practices.81
(c) Each hospital in this state shall annually update the documents in the links posted82
pursuant to subsection (b) of this Code section on no later than July 1 of each year or more83
frequently at its discretion. Noncurrent documents shall remain posted and accessible on84
the hospital's website indefinitely.85
(d) All documents listed in subsection (b) of this Code section shall be prepared in86
accordance with generally accepted accounting principles, as applicable.87
(d.1) No later than December 31, 2024, the department shall establish a uniform template88
and criteria for reporting the documents required to be posted pursuant to this Code section. 89
No later than July 1, 2025, all hospitals shall implement and utilize such uniform template90
and reporting criteria.91
(e) Each hospital in this state shall annually provide to the department the Uniform92
Resource Locator to the link required pursuant to subsection (b) of this Code section no93
later than August 1 each year. The department shall also post a and maintain an updated94
link in a prominent location on its website to the documents listed in subsection (b) of this95
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Code section for containing the Uniform Resource Locator for each hospital in this state96
as provided by each such hospital pursuant to this subsection.97
(f) Any hospital that fails to post the documents required pursuant to subsection (b)98
comply with any provision of this Code section within 30 days of the dates required in this99
Code section within 30 days of the dates required in this Code section shall be suspended100
from receiving any state funds or any donations pursuant to Code Section 48-7-29.20 funds101
administered by the state; provided, however, that the department shall provide a hospital102
30 days' notice of any deficiency and opportunity to correct such deficiency prior to any103
suspension of funds pursuant to this subsection.104
(g) The department shall have jurisdiction to enforce this Code section and to promulgate105
rules and regulations required to administer this Code section.106
(h) Any person who knowingly and willfully includes false, fictitious, or fraudulent107
information in any documents required to be posted pursuant to this Code section shall be108
subject to a violation of Code Section 16-10-20."109
SECTION 2.110
This Act shall become effective upon its approval by the Governor or upon its becoming law111
without such approval.112
SECTION 3.113
All laws and parts of laws in conflict with this Act are repealed.114
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