MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Public Health and Welfare; Appropriations
By: Senator(s) DeBar
AN ACT TO BE KNOWN AS THE SAVE THE RURAL HOSPITAL ACT; TO ESTABLISH THE MISSISSIPPI RURAL HOSPITAL TRANSITION AND IMPROVEMENT GRANT PROGRAM UNDER THE DIRECTION AND ADMINISTRATION OF THE STATE DEPARTMENT OF HEALTH FOR THE PURPOSE OF MAKING GRANTS TO MISSISSIPPI RURAL HOSPITALS TO INCENTIVIZE THE IMPLEMENTATION OF PLANS AND METHODOLOGIES THAT WILL INCREASE ACCESS TO HEALTH CARE IN THE COMMUNITY AND RURAL HOSPITAL SUSTAINABILITY; TO PRESCRIBE THE REQUIREMENTS FOR PARTICIPATION IN THE PROGRAM AND PROVIDE RESTRICTIONS ON THE USE OF GRANT MONIES RECEIVED BY RURAL HOSPITALS UNDER THE PROGRAM; TO PROVIDE FOR THE ESTABLISHMENT OF AN ADVISORY COUNCIL TO REVIEW AND MAKE RECOMMENDATIONS TO THE DEPARTMENT ON THE PROGRAM AND AWARDS OF GRANTS; TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE KNOWN AS THE MISSISSIPPI RURAL HOSPITAL TRANSITION AND IMPROVEMENT GRANT PROGRAM FUND, FROM WHICH GRANTS AND EXPENDITURES AUTHORIZED IN CONNECTION WITH THE PROGRAM SHALL BE DISBURSED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This chapter shall be known and may be cited as the "Save the Rural Hospital Act."
SECTION 2. For purposes of this chapter:
(a) "Mississippi rural hospital" means any nonfederal general acute care hospital that:
(i) Has fifty (50) or fewer short term acute beds exclusive of geriatric psychiatric beds or any other type of beds and is located in a Mississippi county that has a population of less than sixty thousand (60,000) or is located in a municipality that has a population of less than seven thousand five hundred (7,500); or
(ii) Is designated as a critical access hospital under 42 CFR 485, Subpart F.
(b) "Department" means the State Department of Health.
(c) "Grant" means a grant by the department to a rural hospital in accordance with this chapter.
(d) "Program" means the Mississippi Rural Hospital Transition and Improvement Grant Program established in this chapter.
SECTION 3. The Mississippi Rural Hospital Transition and Improvement Grant Program is established under the direction and administration of the State Department of Health for the purpose of making grants to rural hospitals in Mississippi to incentivize the implementation of plans and methodologies that will increase access to health care in the community and rural hospital sustainability.
SECTION 4. (1) Any Mississippi rural hospital desiring to participate in the program shall make application for a grant to the department in a form satisfactory to the department. The department shall receive grant proposals from Mississippi rural hospitals. All proposals shall be submitted in accordance with the provisions of grant procedures, criteria and standards developed and made public by the department. All approved grants shall be awarded within thirty (30) days of approval by the department.
(2) The department shall use the funds provided by this chapter to make grants until July 1, 2020, to Mississippi rural hospitals upon proposals made under subsection (1) of this section. Grants that are awarded to Mississippi rural hospitals shall only be used by those hospitals to implement plans and methodologies that will increase access to health care in the community and rural hospital sustainability. Grant monies may be used by the rural hospital:
(a) To modify the type and extent of services provided by the rural hospital, in order to reflect the needs of the rural hospital and community;
(b) To develop hospital-based physician practices that integrate hospital and existing medical practice facilities that agree to transfer their practices, equipment, staffing, and administration to the hospital;
(c) To establish a provider cooperative, a telemedicine system, an electronic health records system, or a rural health care system or to cover expenses associated with being designated as a critical access hospital for the Medicare Rural Hospital Flexibility Program; and/or
(d) To increase accessibility to health services in the community that it serves and/or to address efficiency and viability of the hospital.
(3) Grants received by Mississippi rural hospitals under this chapter shall not be used:
(a) To supplant federal funds traditionally received by those hospitals, but shall be used to supplement them; or
(b) To finance or satisfy any existing debt.
(4) The department shall develop regulations, procedures and application forms to govern how grants will be awarded, shall develop a plan to ensure that grants are awarded to most deserving Mississippi rural hospitals, and shall develop an audit process to assure that grant monies are used in the manner awarded.
(5) The department shall administer the fund created by Section 5 of this act for the purpose of providing service grants to Mississippi rural hospitals in accordance with this chapter and the following terms and conditions:
(a) The total amount of grants issued under this chapter shall be Four Million Dollars ($4,000,000.00) per state fiscal year.
(b) No Mississippi rural hospital shall receive assistance under this program in excess of Two Hundred Thousand Dollars ($200,000.00) per hospital per state fiscal year.
(c) Each Mississippi rural hospital receiving a grant shall provide a yearly report to the department that details the expenditure of grant funds and certify that the grant funds were used in the manner awarded.
(6) The department shall establish an advisory council to review and make recommendations to the department on the Mississippi Rural Hospital Transition and Improvement Grant Program and awards of grants. Those recommendations by the advisory council shall not be binding upon the department, but when a recommendation by the advisory council is not followed by the department, the department shall keep a record of the reasons for not accepting the advisory council's recommendation, and provide for an appeals process.
(7) The composition of the advisory council shall be the following:
(a) Two (2) employees of the department;
(b) One (1) representative of the Mississippi Hospital Association;
(c) Two (2) representatives from two (2) separate rural hospitals that are critical access hospitals;
(d) Two (2) representatives from two (2) separate rural hospitals that are not critical access hospitals; and
(e) Two (2) licensed physicians from two (2) separate areas designated as a rural county or rural area by the department.
(8) The department may use a portion of any grant monies received under this chapter to administer the program and to pay reasonable expenses incurred by the advisory council; however, in no case shall more than Sixty Thousand Dollars ($60,000.00) annually be used for program expenses.
(9) No assistance shall be provided to a Mississippi rural hospital under this chapter unless the Mississippi rural hospital certifies to the department that it will not discriminate against any employee or against any applicant for employment because of race, religion, color, national origin, sex or age.
SECTION 5. There is created a special fund in the State Treasury to be known as the Mississippi Rural Hospital Transition and Improvement Grant Program Fund, from which grants and expenditures authorized in connection with the program shall be disbursed. All monies received by legislative appropriation to carry out the purposes of this chapter shall be deposited into the special fund.
SECTION 6. This act shall be codified as a new chapter in Title 41, Mississippi Code of 1972.
SECTION 7. This act shall take effect and be in force from and after July 1, 2017.