Georgia 2023-2024 Regular Session

Georgia Senate Bill SB505 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		24 LC 33 9727S
2		-	Senate Bill 505
3		-	By: Senators Tillery of the 19th, Cowsert of the 46th, Watson of the 1st, Dolezal of the 27th,
4		-	Gooch of the 51st and others
5		-	AS PASSED
	2	+	The House Committee on Health offers the following substitute to SB 505:
6	3		A BILL TO BE ENTITLED
7	4		AN ACT
8		-	To amend Chapter 7 of Title 31 of the Official Code of Georgia Annotated, relating to
9		-	1
	5	+	To amend Chapter 7 of Title 31 of the Official Code of Georgia Annotated, relating to1
10	6		regulation and construction of hospitals and other health care facilities, so as to revise2
11	7		provisions relating to required publication by hospital of certain financial documents on its3
12	8		website; to provide for uniform reporting requirements; to require hospitals to annually4
13	9		provide the Uniform Resource Locator for the webpage containing the financial documents;5
14	10		to provide for increased penalties for noncompliance; to revise provisions relating to6
15	11		appointments to fill vacancies on boards for hospital authorities; to provide for related7
16	12		matters; to provide for an effective date; to repeal conflicting laws; and for other purposes.8
17	13		BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
18	14		SECTION 1.10
19	15		Chapter 7 of Title 31 of the Official Code of Georgia Annotated, relating to regulation and11
20	16		construction of hospitals and other health care facilities, is amended by revising Code Section12
21	17		31-7-22, relating to required publication by hospital of certain documentation on website,13
22	18		updating, penalty for noncompliance, enforcement, and individual criminal penalty, as14
23	19		follows:15
24		-	S. B. 505
	20	+	S. B. 505 (SUB)
25	21		- 1 - 24 LC 33 9727S
26		-	"31-7-22.
27		-	16
	22	+	"31-7-22.16
28	23		(a) As used in this Code section, the term 'hospital' means a nonprofit hospital, a hospital17
29	24		owned or operated by a hospital authority, or a nonprofit corporation formed, created, or18
30	25		operated by or on behalf of a hospital authority.19
31		-	(b) Each
32		-	Beginning October 1, 2019, each hospital in this state shall be required to post20
	26	+	(b) Each Beginning October 1, 2019, each hospital in this state shall be required to post20
33	27		and maintain a link in a prominent location on the main page of its website to the most21
34	28		recent version of each of the following documents in the format and manner established by22
35	29		the department pursuant to subsection (d.1) of this Code section:23
36	30		(1) Federal related disclosures:24
37	31		(A) Copies of audited financial statements that are general purpose financial25
38	32		statements, which express the unqualified opinion of an independent certified public26
39	33		accounting firm for the most recently completed fiscal year for the hospital; each of its27
40	34		affiliates, except those affiliates that were inactive or that had an immaterial amount of28
41	35		total assets; and the hospital's parent corporation that include the following:29
42	36		(i) A PDF version of all audited financial statements;30
43	37		(ii) A note in the hospital's audited financial statements that identifies individual31
44	38		amounts for such hospital's gross patient revenue, allowances, charity care, and net32
45	39		patient revenue;33
46	40		(iii) Audited consolidated financial statements for hospitals with subsidiaries and34
47	41		consolidating financial statements that at a minimum contain a balance sheet and35
48	42		statement of operations and that provide a breakout of the hospital's and each36
49	43		subsidiary's numbers with a report from independent accountants on other financial37
50	44		information; and38
51	45		(iv) Audited consolidated financial statements for the hospital's parent corporation39
52	46		and consolidating financial statements that at a minimum contain a balance sheet and40
53	47		statement of operations and that provide a breakout of the hospital's and each41
54		-	S. B. 505
	48	+	S. B. 505 (SUB)
55	49		- 2 - 24 LC 33 9727S
56		-	affiliate's numbers with a report from independent accountants on other financial
57		-	42
	50	+	affiliate's numbers with a report from independent accountants on other financial42
58	51		information; and43
59		-	(B) A copy
60		-	Copy of audited Internal Revenue Service Form 990, including Schedule44
	52	+	(B) A copy Copy of audited Internal Revenue Service Form 990, including Schedule44
61	53		H for hospitals and other applicable attachments; provided, however, that for any45
62	54		hospital not required to file IRS Form 990, the department shall establish and provide46
63	55		a form that collects the same information as is contained in Internal Revenue Service47
64	56		Form 990, including Schedule H for hospitals, as applicable; and48
65	57		(2) Georgia supplemental disclosures:49
66	58		(A) The Copy of the hospital's completed annual hospital questionnaire, as required by50
67	59		the department;51
68	60		(B) The community benefit report prepared pursuant to Code Section 31-7-90.1, if52
69	61		applicable;53
70	62		(C) The disproportionate share hospital survey, if applicable;54
71	63		(D) Listing of all real property holdings of the hospital, including the location and size,55
72	64		parcel ID number, purchase price, current use, and any improvements made to such56
73	65		property;57
74	66		(E) Listing of any ownership or interest the nonprofit hospital has in any joint venture,58
75	67		partnership, subsidiary holding company, or captive insurance company; where any59
76	68		such entity is domiciled; and the value of any such ownership or interest;60
77	69		(F) Listing of any bonded indebtedness, outstanding loans, and bond defaults, whether61
78	70		or not in forbearance; and any bond disclosure sites of the hospital;62
79	71		(G) A report that identifies by purpose, the ending fund balances of the net assets of63
80	72		the hospital and each affiliate as of the close of the most recently completed fiscal year,64
81	73		distinguishing between donor permanently restricted, donor temporarily restricted,65
82	74		board restricted and unrestricted fund balances. The hospital's interest in its foundation66
83	75		shall be deducted from the foundation's total fund balance;67
84	76		(H) All Copy of all going concern statements regarding the hospital;68
85		-	S. B. 505
	77	+	S. B. 505 (SUB)
86	78		- 3 - 24 LC 33 9727S
87		-	(I) The most recent legal chart of corporate structure, including the hospital, each of
88		-	69
	79	+	(I) The most recent legal chart of corporate structure, including the hospital, each of69
89	80		its affiliates and subsidiaries, and its parent corporation, duly dated;70
90		-	(J) A report
91		-	Report listing the salaries and fringe benefits for the ten highest paid71
	81	+	(J) A report Report listing the salaries and fringe benefits for the ten highest paid71
92	82		administrative positions in the hospital. Each position shall be identified by its72
93	83		complete, unabbreviated title. Fringe benefits shall include all forms of compensation,73
94	84		whether actual or deferred, made to or on behalf of the employee, whether full or74
95	85		part-time;75
96	86		(K) Evidence of accreditation by accrediting bodies, including, but not limited to, the76
97	87		Joint Commission and DNV; and77
98	88		(L) The Copy of the hospital's policies regarding the provision of charity care and78
99	89		reduced cost services to the indigent, excluding medical assistance recipients, and its79
100	90		debt collection practices.80
101	91		(c) Each hospital in this state shall annually update the documents in the links posted81
102	92		pursuant to subsection (b) of this Code section on no later than July 1 of each year or more82
103	93		frequently at its discretion. Noncurrent documents shall remain posted and accessible on83
104	94		the hospital's website indefinitely.84
105	95		(d) All documents listed in subsection (b) of this Code section shall be prepared in85
106	96		accordance with generally accepted accounting principles, as applicable.86
107	97		(d.1) No later than December 31, 2024, the department shall establish a uniform template87
108	98		and criteria for reporting the documents required to be posted pursuant to this Code section. 88
109	99		No later than July 1, 2025, all hospitals shall implement and utilize such uniform template89
110	100		and reporting criteria.90
111	101		(e) Each hospital in this state shall annually provide to the department the Uniform91
112	102		Resource Locator to the link required pursuant to subsection (b) of this Code section no92
113	103		later than August 1 each year. The department shall also post a and maintain an updated93
114	104		link in a prominent location on its website to the documents listed in subsection (b) of this94
115		-	S. B. 505
	105	+	S. B. 505 (SUB)
116	106		- 4 - 24 LC 33 9727S
117	107		Code section for containing the Uniform Resource Locator for each hospital in this state95
118	108		as provided by each such hospital pursuant to this subsection.96
119	109		(f) Any hospital that fails to post the documents required pursuant to subsection (b)97
120	110		comply with any provision of this Code section within 30 days of the dates required in this98
121	111		Code section shall be suspended from receiving any state funds or any donations pursuant99
122	112		to Code Section 48-7-29.20 funds administered by the state; provided, however, that the100
123	113		department shall provide a hospital 30 days' notice of any deficiency and opportunity to101
124	114		correct such deficiency prior to any suspension of funds pursuant to this subsection.102
125	115		(g) The department shall have jurisdiction to enforce this Code section and to promulgate103
126	116		rules and regulations required to administer this Code section.104
127	117		(h) Any person who knowingly and willfully includes false, fictitious, or fraudulent105
128	118		information in any documents required to be posted pursuant to this Code section shall be106
129	119		subject to a violation of Code Section 16-10-20."107
130	120		SECTION 2.108
131	121		Said chapter is further amended in Code Section 31-7-72, relating to creation of county and109
132	122		municipal hospital authorities, by revising subsection (b) as follows:110
133	123		"(b) Appointments to fill vacancies on the board of any hospital authority activated on or111
134	124		after March 15, 1964, for either an unexpired or full term as fixed in the original resolution112
135	125		or ordinance creating the authority, shall be made as follows:113
136	126		(1) The governing body of the area of operation shall submit a list of three eligible114
137	127		persons to the board of the hospital authority; and115
138	128		(2) The board at its next regular meeting shall either select one of the three persons116
139	129		named in such list or decline to select any of the persons named in the list. If the board117
140	130		declines to select any of the persons named on the list, it shall so notify the governing118
141	131		body; and119
142		-	S. B. 505
	132	+	S. B. 505 (SUB)
143	133		- 5 - 24 LC 33 9727S
144	134		(3) Upon receipt of notification that the board has declined to select any of the persons120
145	135		named in the governing body's list, the governing body shall submit a second list of three121
146	136		eligible persons, no one of whom was named on the first list, to the board of the hospital122
147	137		authority. The board at its next regular meeting after receipt of the second list shall select123
148	138		one of the three persons named in the second list."124
149	139		SECTION 3.125
150	140		This Act shall become effective upon its approval by the Governor or upon its becoming law126
151	141		without such approval.127
152	142		SECTION 4.128
153	143		All laws and parts of laws in conflict with this Act are repealed.129
154		-	S. B. 505
	144	+	S. B. 505 (SUB)
155	145		- 6 -