PRINTER'S NO. 215
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.271
Session of
2025
INTRODUCED BY CAUSER, CIRESI, CUTLER, JAMES, PICKETT AND VITALI,
JANUARY 22, 2025
REFERRED TO COMMITTEE ON HEALTH, JANUARY 22, 2025
AN ACT
Establishing the Distressed Hospital Grant Program to award
grants to distressed hospitals to prevent the reduction of
services or cessation of operations; and making an
appropriation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Distressed
Hospital Grant Program Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Applicant." A distressed hospital that submits an
application under section 5(a) to the department for a grant
under the program.
"Department." The Department of Health of the Commonwealth.
"Designated medically underserved area." As defined in
section 1301 of the act of December 2, 1992 (P.L.741, No.113),
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19 known as the Children's Health Care Act.
"Distressed hospital." A hospital that meets all of the
following criteria:
(1) The hospital had a negative profit margin for at
least the previous three consecutive calendar years or fiscal
years.
(2) The hospital is located more than 25 miles of travel
distance on a roadway to another hospital located within this
Commonwealth.
"Grant." An amount of money awarded by the department under
the program.
"Hospital." Any of the following:
(1) A hospital licensed by the department under section
808 of the act of July 19, 1979 (P.L.130, No.48), known as
the Health Care Facilities Act, that provides inpatient
medical care and other related services for surgery, acute
medical conditions or injuries.
(2) A hospital licensed by the department under section
808 of the Health Care Facilities Act that specializes in
services exclusively to infants, children, adolescents and
young adults from birth up to 21 years of age.
"Program." The Distressed Hospital Grant Program established
under section 3.
"Rural county." A county of this Commonwealth where the
number of people per square mile within the county is less than
291.
Section 3. Establishment of program.
The Distressed Hospital Grant Program is established within
the department for the purposes specified under this act.
Section 4. Awards of grants.
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30 The department shall award grants in accordance with this act
from money appropriated by the General Assembly for grants.
Section 5. Applications for grants.
(a) Applications.--A distressed hospital may apply for a
grant. The department shall develop the application in a form
determined by the department and make the application available
electronically on the department's publicly accessible Internet
website. To be eligible for a grant, a distressed hospital shall
include any information required by the department in the
application, including the certification under section 6.
(b) Consideration.--No later than 45 days after the
effective date of this subsection, the department shall receive
and consider applications on a rolling basis until funding for
grants has been completely expended, or until December 31, 2029,
whichever occurs first.
Section 6. Certification requirements.
(a) Certification.--An applicant shall, in good faith,
certify all of the following to the department:
(1) The applicant is a distressed hospital and, if
applicable, meets one of the criteria specified under section
9 for a priority to receive a grant.
(2) The distressed hospital will remain in operation and
does not intend to reduce services or cease operations within
two years of the date of receipt of a grant.
(3) The grant will be used to prevent the distressed
hospital from reducing services or ceasing operations.
(4) The grant will not be used to pay a remuneration to
the distressed hospital's executives, administrators or
administrative support staff.
(5) The distressed hospital has not been awarded more
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30 than one grant during a calendar year or fiscal year.
(6) The distressed hospital has taken measures to
affiliate or enter into a business arrangement with another
person to prevent the distressed hospital from reducing
services or ceasing operations. The distressed hospital shall
provide supporting documentation to the department for the
measures required under this paragraph.
(7) The information provided in the application under
section 5 and this section and all supporting documentation
is true and accurate in all material aspects.
(b) False statements.--An applicant or an authorized
representative of the applicant that knowingly makes a false
statement to obtain a grant shall be subject to 18 Pa.C.S. §
4904 (relating to unsworn falsification to authorities).
Section 7. Review of applications.
(a) Approval or disapproval.--No later than 60 days after
the department has received a completed application under
section 5(a), the department shall approve or deny the
application for a grant. The department shall provide a notice
to the applicant of any of the following:
(1) The application for a grant is approved.
(2) The application for a grant is denied and the
reasons for denying the application.
(3) The application for a grant is approved for an
amount less than requested by the applicant and the reasons
for approving an amount less than requested by the applicant.
(b) Grant agreements.--Upon approving an application under
subsection (a), the department shall enter into a grant
agreement with the distressed hospital to award the grant. The
grant agreement shall explain the terms and conditions of the
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30 grant, including the applicable laws of this Commonwealth and
reporting requirements. The department, the distressed hospital
and any other applicable party may enter the grant agreement via
electronic signature.
Section 8. Distribution of grant money.
No later than 60 days after approving an application under
section 7(a), the department shall distribute grant money to a
distressed hospital in accordance with this act as follows:
(1) The distressed hospital may receive an amount equal
to no more than 20% of the amount of money available for the
program.
(2) The department may award grants to the distressed
hospital in increments of $1,000, subject to the limitation
under paragraph (1).
(3) The department may not distribute grant money to the
distressed hospital unless the department, the distressed
hospital and any other applicable party have fully executed a
grant agreement under section 7(b).
Section 9. Priority of grant awards.
In awarding grants, the department shall prioritize all of
the following:
(1) A distressed hospital that has provided notice to
the department that the distressed hospital will reduce
services or cease operations under 28 Pa. Code § 51.3
(relating to notification).
(2) A distressed hospital located in a designated
medically underserved area.
(3) A distressed hospital located in a rural county.
Section 10. Reports.
(a) Publication.--No later than December 31 of each year,
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30 the department shall publish a report on the department's
publicly accessible Internet website that contains the following
information:
(1) A list of each grant.
(2) The name and address of each grant recipient.
(3) The amount of the grant and a description of the
financial impact to the grant recipient.
(b) Submission.--The department shall submit the report
under subsection (a) to the following:
(1) The chair and minority chair of the Appropriations
Committee of the Senate.
(2) The chair and minority chair of the Appropriations
Committee of the House of Representatives.
(3) The chair and minority chair of the Health and Human
Services Committee of the Senate.
(4) The chair and minority chair of the Health Committee
of the House of Representatives.
(c) Final report.--Upon disbursement of all money
appropriated for grants, or December 31, 2029, whichever is
earlier, the department shall publish a final report under
subsection (a).
Section 11. Appropriation.
The sum of $100,000,000 is appropriated from the General Fund
to the department for the award of grants. The appropriation
shall not lapse and shall be available for u se until the
disbursement of all money appropriated for the program, or
December 31, 2029, whichever is earlier.
Section 12. Effective date.
This act shall take effect immediately.
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