Pennsylvania HB 271: 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.

Bill Text

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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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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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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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 gra