HB1299: HB1299 Health; allow hospital authorities to acquire, develop, operate, or equip certain outpatient healthcare facilities

26 LC 46 1373 House Bill 1299 By: Representatives Jasperse of the 11th, Burchett of the 176th, O’Steen of the 169th, Barton of the 5th, Gunter of the 8th, and others A BILL TO BE ENTITLED AN ACT To amend Article 4 of Chapter 7 of Title 31 of the Official Cod e of Georgia Annotated,1 relating to county and municipal hospital authorities, so as to allow hospital authorities to2 acquire, develop, operate, or equip certain outpatient healthca re facilities; to provide for3 definitions; to provide for related matters; to repeal conflicting laws; and for other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Article 4 of Chapter 7 of Title 31 of the Official Code of Geor gia Annotated, relating to7 county and municipal hospital authorities, is amended in Code Section 31-7-75, relating to8 functions and powers, by deleting "and" at the end of paragraph (26), by replacing the period9 with "; and" at the end of paragraph (27), and by adding a new paragraph to read as follows:10 "(28)(A) As used in this paragraph, the term 'rural joint venture outpatient healthcare11 facility' shall have the same meaning as set forth in Code Section 31-7-77.12 (B) To acquire, develop, operate, or equip a rural joint venture outpatient healthcare13 facility that will be located in the same rural county as an ex isting hospital owned or14 operated by the hospital authority, to be controlled by the hos pital authority, to be15 jointly owned and utilized by a single group of physicians who practice the same16 H. B. 1299 - 1 - 26 LC 46 1373 medical specialty when the hospital authority determines that doing so will promote the17 public health needs of the community served by the hospital authority. The ownership18 of such facility by the hospital authority shall be no less tha n 51 percent and the19 ownership of such facility by the single group of physicians shall be no more than 4920 percent."21 SECTION 2.22 Said article is further amended by revising Code Section 31-7-77, relating to prohibition on23 for-profit projects, rates and charges, and utilization of revenues to pay certain obligations,24 as follows:25 "31-7-77.26 (a) As used in this Code section, the term:27 (1) 'Rural county' means a county having a population of fewer than 50,000 according28 to the United States decennial census of 2020 or any future suc h census; provided,29 however, that for counties which contain a military base or ins tallation, the military30 personnel and their dependents living in such county shall be e xcluded from the total31 population of such county for purposes of this definition.32 (2) 'Rural joint venture outpatient healthcare facility' means a freestanding medical33 facility that provides diagnostic, treatment, or rehabilitative services to patients but fewer34 than 24 continuous hours of such services. Such term shall not include a hospital, nursing35 home, assisted living community, or personal care home.36 (a)(b) No authority shall operate or construct any project for profit. It shall fix rates and37 charges consistent with this declaration of policy and such as will produce revenues only38 in amounts sufficient, together with all other funds of the aut hority, to pay principal and39 interest on certificates and obligations of the authority, to p rovide for maintenance and40 operation of the project, and to create and maintain a reserve sufficient to meet principal41 and interest payments due on any certificates in any one year a fter the issuance thereof. 42 H. B. 1299 - 2 - 26 LC 46 1373 The authority may provide reasonable reserves for the improveme nt, replacement, or43 expansion of its facilities or services.44 (b)(c) Notwithstanding subsection (a)(b) of this Code section or any other provisions to45 the contrary, a joint hospital authority established pursuant to Code Section 31-7-72 which46 operates or leases a hospital containing more than 900 licensed beds shall only utilize47 revenues to pay principal and interest on certificates and obligations of the authority, to pay48 pension plan obligations of the authority existing as of Januar y 1, 2021, and for funding49 projects leased by the authority to a lessee pursuant to a contract entered into in accordance50 with paragraph (7) of Code Section 31-7-75; provided, however, that no more than 151 percent of revenues shall be utilized to pay for personnel costs for employees or contractors52 of the authority and no revenues shall be used to perform any power or duty delegated in53 a lease.54 (d) Notwithstanding subsection (b) of this Code section or any other provision to the55 contrary, either a hospital in a rural county owned or operated by a hospital authority, or56 a hospital authority directly, is authorized to acquire, develop, operate, or equip a rural joint57 venture outpatient healthcare facility in accordance with paragraph (28) of Code Section58 31-7-75."59 SECTION 3.60 All laws and parts of laws in conflict with this Act are repealed.61 H. 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