Florida Senate - 2017 SB 510 By Senator Gainer 2-00435A-17 2017510__ 1 A bill to be entitled 2 An act relating to a grant program for rural 3 hospitals; amending s. 395.6061, F.S.; providing 4 legislative findings and intent; requiring the 5 Department of Health to establish and administer the 6 Florida Rural Hospital Capital Improvement Competitive 7 Grant Program for certain rural hospitals; revising 8 the amount of a grant award; revising grant 9 eligibility and preferences; establishing allowable 10 uses of funds; requiring the department to submit an 11 annual report to the Governor and the Legislature; 12 deleting requirements for certain information in grant 13 applications; deleting provisions relating to the 14 disbursal of funds; providing an effective date. 15 16 Be It Enacted by the Legislature of the State of Florida: 17 18 Section 1. Section 395.6061, Florida Statutes, is amended 19 to read: 20 395.6061 Rural hospital capital improvement.— 21 (1) LEGISLATIVE FINDINGS AND INTENT.—The Legislature finds 22 that rural hospitals have limited ability to increase operating 23 revenues or to access other public or private funding sources 24 that are needed to maintain critical infrastructure, including, 25 but not limited to, the replacement of high-cost medical care 26 equipment or improvements to facility infrastructure. Rural 27 hospitals that do not have reasonable access to alternative 28 sources of revenue to pay for critical infrastructure needs are 29 at risk, and patient access, care, and quality are threatened. 30 Therefore, the Legislature finds that it is necessary to 31 establish the Florida Rural Hospital Capital Improvement 32 Competitive Grant Program for eligible rural hospitals to ensure 33 their sustainability. 34 (2) FLORIDA RURAL HOSPITAL CAPITAL IMPROVEMENT COMPETITIVE 35 GRANT PROGRAM.—The Department of Health shall establish and 36 administer the Florida Rural Hospital Capital Improvement 37 Competitive Grant Program for rural hospitals. Subject to annual 38 appropriation, the department shall establish grant awards up to 39 $750,000 for each hospital that meets the eligibility 40 requirements in subsection (3). Grants must be made available to 41 eligible rural hospitals based on the competitive grant program 42 and on criteria established by the agency. 43 (3) GRANT ELIGIBILITY.—In order to be eligible for a grant 44 award, a hospital must be a rural hospital, as defined in s. 45 395.602, and must demonstrate that: 46 (a) Grant funds are necessary to maintain or improve the 47 quality of its health care services; and 48 (b) There is a return on investment to the taxpayers of 49 this state. 50 (4) AWARD OF GRANTS.—The department shall establish by rule 51 a grant application process and criteria for the evaluation of 52 applications. It shall score and rank grant applications based 53 on these criteria. Preference in grant award decisions shall be 54 given to any applicant that leverages additional private or 55 public matching funds or in-kind contributions. Preference in 56 grant award decisions shall also be given to any applicant that 57 demonstrates hospital practices targeted to reducing unnecessary 58 emergency room visits and preventable hospitalizations through 59 increased access to primary care services. 60 (5) ALLOWABLE USES OF FUNDS.—Grant awards may be used only 61 for hospital medical equipment purchases or facility 62 infrastructure improvements in the rural area serviced by the 63 grantee. 64 (6) REPORT.—The department shall provide an annual report 65 to the Governor, the President of the Senate, and the Speaker of 66 the House of Representatives which includes the list of grantees 67 and, for each grantee, the amount awarded, a brief description 68 detailing what the funds will be used for, the anticipated 69 outcomes to be achieved, and the return on investment to the 70 taxpayers of this state.There is established a rural hospital71capital improvement grant program.72(1) A rural hospital as defined in s. 395.602 may apply to73the department for a grant. The grant application must provide74information that includes:75(a) A statement indicating the problem the rural hospital76proposes to solve with the grant funds;77(b) The strategy proposed to resolve the problem;78(c) The organizational structure, financial system, and79facilities that are essential to the proposed solution;80(d) The projected longevity of the proposed solution after81the grant funds are expended;82(e) Evidence of participation in a rural health network as83defined in s. 381.0406;84(f) Evidence that the rural hospital has difficulty in85obtaining funding or that funds available for the proposed86solution are inadequate;87(g) Evidence that the grant funds will assist in88maintaining or returning the hospital to an economically stable89condition or that any plan for closure or realignment of90services will involve development of innovative alternatives for91the discontinued services;92(h) Evidence of a satisfactory record-keeping system to93account for grant fund expenditures within the rural county;94(i) A rural health network plan that includes a description95of how the plan was developed, the goals of the plan, the links96with existing health care providers under the plan, indicators97quantifying the hospital’s financial well-being, measurable98outcome targets, and the current physical and operational99condition of the hospital.100(2) Each rural hospital as defined in s. 395.602 shall101receive a minimum of $100,000 annually, subject to legislative102appropriation, upon application to the Department of Health, for103projects to acquire, repair, improve, or upgrade systems,104facilities, or equipment.105(3) Any remaining funds shall annually be disbursed to106rural hospitals in accordance with this section. The Department107of Health shall establish, by rule, criteria for awarding grants108for any remaining funds, which must be used exclusively for the109support and assistance of rural hospitals as defined in s.110395.602, including criteria relating to the level of111uncompensated care rendered by the hospital, the participation112in a rural health network as defined in s. 381.0406, and the113proposed use of the grant by the rural hospital to resolve a114specific problem. The department must consider any information115submitted in an application for the grants in accordance with116subsection (1) in determining eligibility for and the amount of117the grant, and none of the individual items of information by118itself may be used to deny grant eligibility.119(4) The department shall ensure that the funds are used120solely for the purposes specified in this section. The total121grants awarded pursuant to this section shall not exceed the122amount appropriated for this program.123 Section 2. This act shall take effect upon becoming a law.