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