--- title: HB 662. Health; rural hospital organization; revise definition collection: bills id: 2025-2026/hb662 cite_as: HB 662, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/hb662 md_url: https://georgiacommons.org/bills/2025-2026/hb662.md text_url: https://georgiacommons.org/bills/2025-2026/hb662/text source_url: https://www.legis.ga.gov/legislation/70947 date: 2026-02-18 status: engrossed corpus_version: bills-2026-09-13 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/hb661.md next: https://georgiacommons.org/bills/2025-2026/hb663.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 612 omitted_url: https://georgiacommons.org/bills/2025-2026/hb662.md?full=1 bill_number: HB 662 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: House bill_type: bill status_date: 2026-02-17 last_action: Senate Read and Referred sponsors: - Angie O'Steen - Jaclyn Ford text_version: Comm Sub has_text: true legiscan_url: https://legiscan.com/GA/bill/HB662/2025 upstream_id: 1987898 summaries_model: claude-sonnet-5 topic_tags: - rural hospitals - hospital tax credits - health care funding - emergency departments - indigent care --- # HB 662. Health; rural hospital organization; revise definition ## Text House Bill 662 (COMMITTEE SUBSTITUTE) By: Representatives O’Steen of the 169th and Ford of the 170th A BILL TO BE ENTITLED AN ACT To amend Code Section 31-8-9.1 of the Official Code of Georgia Annotated, relating to tax credit for contributions to certain rural hospital organizations and hospital eligibility and requirements, so as to revise the definition of "rural hospital organization"; to provide for related matters; to repeal conflicting laws; and for other purposes. BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. Code Section 31-8-9.1 of the Official Code of Georgia Annotated, relating to tax credit for contributions to certain rural hospital organizations and hospital eligibility and requirements, is amended by revising paragraph (3) of subsection (a) as follows: "(3) 'Rural hospital organization' means an acute care hospital or rural freestanding emergency department licensed by the department pursuant to Article 1 of Chapter 7 of this title that: (A) Has its primary campus Provides inpatient hospital services at a facility located in a rural county or is a critical access hospital; (B) Participates in both Medicaid and medicare Medicare and accepts both Medicaid and medicare Medicare patients; (C) Provides health care services to indigent patients; (D) Is licensed by the department to provide maternal and newborn services or has Has at least 10 5 percent of its annual net revenue categorized as indigent care, charity care, or bad debt; (E) Annually files IRS Form 990, Return of Organization Exempt From Income Tax, with the department, or for any hospital not required to file IRS Form 990, the department will provide a form that collects the same information to be submitted to the department on an annual basis; (F) Is operated by a county or municipal authority pursuant to Article 4 of Chapter 7 of this title or is designated as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code; and (G) Is current with all audits and reports required by law; and (H) Has a three-year average patient margin, as a percent of expense, less than one standard deviation above the state-wide three-year average of organizations defined in subparagraphs (A) through (G) of this paragraph, as calculated by the department. As used in this subparagraph, the term 'patient margin' means gross patient revenues less contractual adjustments, bad debt, indigent and charity care, other uncompensated care, and total expenses." SECTION 2. All laws and parts of laws in conflict with this Act are repealed. ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. House Bill 662 would broaden which rural hospitals in Georgia can qualify for the state's rural hospital tax credit program by loosening several eligibility rules in Georgia's rural hospital tax credit law (O.C.G.A. § 31-8-9.1). ### Plain-language summary Georgia gives tax credits to donors who contribute to certain qualifying rural hospitals. To qualify as a 'rural hospital organization,' a hospital currently has to meet a list of tests, including providing inpatient services at a facility in a rural county, keeping at least 10 percent of its revenue tied to indigent or charity care, and having a three-year average patient profit margin below a certain statewide benchmark. HB 662 changes several of those tests. It adds rural freestanding emergency departments (facilities that provide emergency care without full inpatient hospital services) to the list of eligible organizations. It changes the location test so a hospital qualifies if its primary campus is in a rural county, rather than requiring inpatient services there. It lowers the indigent/charity/bad debt revenue threshold from 10 percent to 5 percent, or allows qualification if the hospital is licensed to provide maternal and newborn services. It also removes the requirement that a hospital's three-year average patient profit margin stay below a certain statewide average. The bill repeals any conflicting laws. ### What it does - Adds rural freestanding emergency departments, not just acute care hospitals, to the list of facilities that can qualify as a rural hospital organization eligible for the tax credit. - Changes the location requirement so a hospital qualifies if its primary campus is located in a rural county, rather than requiring it to provide inpatient services there. - Lowers the required share of annual net revenue tied to indigent care, charity care, or bad debt from 10 percent to 5 percent, or allows qualification if the hospital is licensed for maternal and newborn services. - Removes the existing requirement that a hospital's three-year average patient profit margin stay below one standard deviation above the statewide average. - Corrects capitalization of 'Medicare' in the Medicaid and Medicare participation requirement. ### Who it affects Rural hospitals and rural freestanding emergency departments in Georgia that seek to qualify for the state's rural hospital tax credit program, along with individuals and businesses who donate to those facilities to claim the credit, and the Department of Community Health, which administers the program. ### Why it matters By loosening the financial and service criteria, more rural hospitals and emergency facilities could become eligible for donor tax credits, potentially increasing the pool of hospitals that can raise funds this way. Removing the profit margin cap means hospitals with higher margins would no longer be excluded from the program. ### Key provisions - Section 1 revises paragraph (3) of subsection (a) of O.C.G.A. § 31-8-9.1, the core definition of 'rural hospital organization' used throughout the tax credit program. - Adds rural freestanding emergency departments to the types of facilities that can qualify, alongside acute care hospitals. - Subparagraph (A) changes the rural location test from 'provides inpatient hospital services at a facility' to 'has its primary campus' located in a rural county or being a critical access hospital. - Subparagraph (D) lowers the indigent/charity/bad debt revenue threshold from 10 percent to 5 percent or adds an alternative path via maternal and newborn services licensing. - Deletes former subparagraph (H), which required a hospital's three-year average patient margin to stay below a statewide benchmark calculated by the Department of Community Health. - Section 2 repeals any conflicting laws. ## Status - Status: Engrossed (2026-02-17) - Last action: Senate Read and Referred (2026-02-18) - Sponsors: Angie O'Steen, Jaclyn Ford - Official page: https://www.legis.ga.gov/legislation/70947 > The history, votes, and amendments (612 characters) are at https://georgiacommons.org/bills/2025-2026/hb662.md?full=1