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Regular Session, 2010
HOUSE BILL NO. 1450
BY REPRESENTATIVES ELLINGTON AND RITCHIE
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 and 100.131, relative3
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
authorize rulemaking; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. Subpart R of Part II-A of Chapter 1 of Subtitle I of Title 39 of the8
Louisiana Revised Statutes of 1950, comprised of R.S. 39:100.130 and 100.131, is hereby9
enacted to read as follows: 10
SUBPART R. RURAL HOSPITAL CAPITAL IMPROVEMENT ACT11
§100.130. Rural Hospital Capital Improvement Act; intent; definitions12
A. The legislature finds that:13
(1) Rural hospitals constitute a key component of the state's health care14
safety net by providing a broad array of health care services within Louisiana's rural15
communities, and are especially important for access to health care for the uninsured16
and underinsured.17
(2) Rural hospitals have historically confronted substantial barriers to18
accessing capital for the replacement and improvement of their facilities and19
technology necessary to achieve good health care outcomes in patient care.20 HLS 10RS-2776 REENGROSSED
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(3) This legislation will assist rural hospitals in overcoming the obstacles to1
accessing necessary capital and will provide opportunities for such hospitals to2
ensure access to needed services in underserved areas.3
B. There is hereby established the Rural Hospital Capital Improvement Grant4
Program to provide for grants for capital and other improvements to rural hospitals.5
C. Definitions. As used in this Subpart, the following words and phrases6
shall have the following meaning unless the context indicates otherwise.7
(1) "Department" means the Department of Health and Hospitals, or its8
successor in the role of designated state agency under Title XIX of the Social9
Security Act or any successor act including but not limited to block grants or any10
other funding for medical care of the poor.11
(2) "Rural hospital" means a hospital of sixty beds or less licensed by the12
department that meets the definition of a rural hospital under R.S. 40:1300.143(7)13
as of April 20, 2010.14
(3) "Secretary" means the secretary of the Department of Health and15
Hospitals.16
§100.131. Rural Hospital Capital Improvement Grant Program.17
The department shall administer a program of grants to be available to rural18
hospitals as provided in this Section. Grants shall be made each year from monies19
appropriated for such purpose to provide funding for capital and other improvements20
for rural hospitals which have applied for a grant for that fiscal year. The total21
amount of grants awarded in a year shall not exceed the appropriation, and the22
amount available for each grant shall be contingent upon the total available funding23
and the number of grant applicants. The grant program shall prioritize capital24
initiatives which sustain access to services, enhance health care programs, or create25
opportunities for rural hospitals to develop revenue-producing programs that help26
reduce the reliance of rural hospitals on state funds.27 HLS 10RS-2776 REENGROSSED
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A. The secretary of the department shall design and provide for an1
application procedure and all necessary forms and documentation. At a minimum,2
the grant application shall include the following:3
(1) A statement by the governing body of the hospital expressing a specific4
need or deficiency for which grant monies are being sought.5
(2) A detailed plan for the utilization of grant monies, including the6
organizational structure, financial system and facilities involved, and the system of7
record keeping which will account for the expenditure of grant monies within the8
hospital service area.9
(3) An estimate of the duration or longevity of the remedy or solution10
achieved by use of the grant money.11
(4) Evidence that the hospital has been unable to raise or otherwise acquire12
funding sufficient to address the need or deficiency for which the grant application13
is submitted.14
(5) Evidence that the receipt of grant funding will assist in maintaining or15
returning the hospital to an economically stable condition or that any plan for closure16
or realignment of services will involve the development of innovative alternatives17
for discontinued services.18
B. Each rural hospital requesting grant support may receive a grant award19
in an amount determined by the department, subject to legislative appropriation,20
upon application to the department for projects to acquire, repair, improve or upgrade21
systems, including but not limited to electronic health record technology and other22
facilities or equipment.23
C. The department shall consider any information submitted as part of or24
supporting a grant application in its determination of an applicant's eligibility for25
receipt of a grant; however, no single element or item of information by itself may26
by used to deny an applicant's grant eligibility.27
D. The department shall ensure that grant monies are used solely for the28
purposes specified in this Section.29 HLS 10RS-2776 REENGROSSED
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E. The secretary of the department shall establish by rule the criteria for the1
award of grants in any year in which appropriations for such purpose exceed the total2
amount of grant applications.3
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 which provides for a
program of grants to rural hospitals for acquisition, repair, and upgrade of hospital
facilities and equipment.
Proposed law establishes the Rural Hospital Capital Improvement Act which shall provide
for a program of grants to rural hospitals for acquisition, repair, and upgrade of hospital
facilities and equipment.
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 established in present law (R.S. 40:1300.143(7)) 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. Proposed law provides that the grant
program shall prioritize capital initiatives which sustain access to services, enhance health
care programs, or create opportunities for rural hospitals to develop revenue-producing
programs that help reduce the reliance of rural hospitals on state funds; and that 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.
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Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Health and Welfare to the
original bill.
1. Removed provisions relating to the Rural Hospital Capital Outlay Assistance
Program.
2. Changed definitions and made technical changes to provisions relating to the
Rural Hospital Capital Outlay Assistance Program.
3. Changed language from providing that rural hospitals requesting grant support
"shall" receive a grant award to language providing that such hospitals "may"
receive a grant award.
4. Changed the specified grant amount from $100,000 annually to an amount
determined by the Dept. of Health and Hospitals.
House Floor Amendments to the engrossed bill.
1. Added language stating intent of proposed law to the legislative findings section.
2. Added provisions on prioritization of initiatives to be funded by the Rural
Hospital Capital Improvement Grant Program.