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Regular Session, 2010
HOUSE BILL NO. 1450
BY REPRESENTATIVE ELLINGTON
HOSPITALS: Creates the Rural Hospital Capital Improvement Act
AN ACT1
To enact Subpart R of Part II-A of Chapter 1 of Subtitle I of Title 39 of the Louisiana2
Revised Statutes of 1950, to be comprised of R.S. 39:100.130 through 100.132,3
relative to state grants and capital outlay; to establish the Rural Hospital Capital4
Improvement Act; to provide for a grant program for certain rural hospitals; to5
provide for certain assistance and support related to capital outlay requests by certain6
rural hospitals; to authorize rulemaking; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Subpart R of Part II-A of Chapter 1 of Subtitle I of Title 39 of the9
Louisiana Revised Statutes of 1950, comprised of R.S. 39:100.130 through 100.132, is10
hereby enacted to read as follows: 11
SUBPART R. RURAL HOSPITAL CAPITAL IMPROVEMENT ACT12
§100.130. Rural Hospital Capital Improvement Act; intent; definitions13
A. The legislature finds that:14
(1) Rural hospitals constitute a key component of the state's health care15
safety net by providing a broad array of health care services within Louisiana's rural16
communities, and are especially important for access to health care for the uninsured17
and underinsured.18 HLS 10RS-2776 ORIGINAL
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(2) Rural hospitals have historically confronted substantial barriers to1
accessing capital for the replacement and improvement of their facilities and2
technology necessary to achieve good health care outcomes in patient care.3
(3) This legislation will assist rural hospitals in overcoming the obstacles to4
accessing necessary capital.5
B. There is hereby established the Rural Hospital Capital Improvement Grant6
Program to provide for grants for capital and other improvements to rural hospitals,7
and the Rural Hospital Capital Outlay Assistance Program to provide rural hospitals8
with access to assistance from the Department of Health and Hospitals in the9
development and preparation of capital outlay applications for state capital outlay10
funding.11
C. Definitions. As used in this Subpart, the following words and phrases12
shall have the following meaning unless the context indicates otherwise.13
(1) "Department" means the Department of Health and Hospitals, or its14
successor in the role of designated state agency under Title XIX of the Social15
Security Act or any successor act including but not limited to block grants or any16
other funding for medical care of the poor.17
(2) "Division of administration" shall mean the division of administration as18
established in R.S. 39:1.19
(3) "Office of facility planning and control" means the office of facility20
planning and control within the division of administration.21
(4) "Rural hospital" means a hospital of sixty beds or less licensed by the22
department that meets the definition of a rural hospital under R.S. 40:1300.143(7)23
as of April 20, 2010.24
(5) "Secretary" means the secretary of the Department of Health and25
Hospitals.26
§100.131. Rural Hospital Capital Improvement Grant Program.27
The department shall administer a program of grants to be available to rural28
hospitals as provided in this Section. Grants shall be made each year from monies29 HLS 10RS-2776 ORIGINAL
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appropriated for such purpose to provide funding for capital and other improvements1
for rural hospitals which have applied for a grant for that fiscal year. The total2
amount of grants awarded in a year shall not exceed the appropriation, and the3
amount available for each grant shall be contingent upon the total available funding4
and the number of grant applicants.5
A. The secretary of the department shall design and provide for an6
application procedure and all necessary forms and documentation. At a minimum,7
the grant application shall include the following:8
(1) A statement by the governing body of the hospital expressing a specific9
need or deficiency for which grant monies are being sought.10
(2) A detailed plan for the utilization of grant monies, including the11
organizational structure, financial system and facilities involved, and the system of12
record keeping which will account for the expenditure of grant monies within the13
hospital service area.14
(3) An estimate of the duration or longevity of the remedy or solution15
achieved by use of the grant money.16
(4) Evidence that the hospital has been unable to raise or otherwise acquire17
funding sufficient to address the need or deficiency for which the grant application18
is submitted.19
(5) Evidence that the receipt of grant funding will assist in maintaining or20
returning the hospital to an economically stable condition or that any plan for closure21
or realignment of services will involve the development of innovative alternatives22
for discontinued services.23
B. Each rural hospital requesting grant support shall receive a minimum one24
hundred thousand dollars annually, subject to legislative appropriation, upon25
application to the department for projects to acquire, repair, improve or upgrade26
systems, including but not limited to electronic health record technology and other27
facilities or equipment.28 HLS 10RS-2776 ORIGINAL
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C. The department shall consider any information submitted as part of or1
supporting a grant application in its determination of an applicant's eligibility for2
receipt of a grant; however, no single element or item of information by itself may3
by used to deny an applicant's grant eligibility.4
D. The department shall ensure that grant monies are used solely for the5
purposes specified in this Section.6
E. The secretary of the department shall establish by rule the criteria for the7
award of grants in any year in which appropriations for such purpose exceed the total8
amount of grant applications.9
§100.132. Rural Hospital Capital Outlay Assistance10
The department shall provide assistance and support to eligible rural hospitals11
in the development and preparation of capital outlay requests for purposes of the12
state capital outlay budget. The secretary shall develop guidelines and may issue13
rules with respect to applications and eligibility of a rural hospital capital outlay14
project for receipt of assistance and support by the department. A rural hospital15
seeking such assistance shall make its application in the form and manner prescribed16
by the secretary. The department shall review the hospital's application and notify17
the hospital of its decision to provide assistance with the project within forty-five18
days of receipt of a completed application. At the secretary's discretion, the secretary19
may provide a letter of endorsement for a particular capital outlay project, when the20
application for the project has been completed with the assistance of the department.21
An endorsement by the secretary shall be based on his determination of the relative22
quality, necessity, and feasibility of the project.23
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Ellington HB No. 1450
Abstract: Establishes the Rural Hospital Capital Improvement Act to provide grants and
assistance with the development of capital outlay requests. HLS 10RS-2776 ORIGINAL
HB NO. 1450
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Proposed law establishes the Rural Hospital Capital Improvement Act which shall provide
for a program of grants and opportunities for assistance with the development and
preparation of state capital outlay funding requests by rural hospitals.
Proposed law provides for definitions, including "rural hospital", which means a hospital of
60 beds or less licensed by the Dept. of Health and Hospitals, hereinafter "department", that
meets the definition of a rural hospital under present law as of April 20, 2010.
Proposed law establishes the Rural Hospital Capital Grant Program to be administered by
the department to provide grants to rural hospitals for capital and other improvements
intended to address specific deficiencies or problems. The annual distribution of grant
funding shall be contingent upon the availability of monies appropriated for such purpose.
Proposed law requires the secretary of the department to design and provide for a grant
application procedure. Proposed law provides for specific elements to be contained in the
application, which include a statement by the governing body of the hospital expressing a
specific need or deficiency for which grant monies are being sought, a detailed plan for
expenditures, and evidence that the hospital has been unable to raise or otherwise acquire
funding sufficient to address the need or deficiency for which the grant application is
submitted.
Proposed law authorizes the secretary to promulgate rules to establish the criteria for the
award of grants in any year in which appropriations for such purpose exceed the total
amount of grant applications.
Proposed law establishes a program of assistance to be provided by the department to rural
hospitals in the development and preparation of capital outlay funding requests for purposes
of the state capital outlay budget. The secretary of the department is required to develop
guidelines and may issue rules with respect to applications and eligibility for a rural hospital
capital outlay project to receive assistance and support by the department. The secretary,
at his discretion, may provide a letter of endorsement for a particular capital outlay project,
the application for which has been accomplished with the assistance of the department. An
endorsement by the secretary shall be based on his determination of the relative quality,
necessity, and feasibility of the project.
(Adds R.S. 39:100.130-130.2)