Florida Senate - 2017                              CS for SB 510
       By the Committee on Health Policy; and Senators Gainer and
       588-01939-17                                           2017510c1
    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; providing criteria for grant application
   10         ranking; establishing allowable use of funds;
   11         requiring the department to submit an annual report to
   12         the Governor and the Legislature; deleting
   13         requirements for certain information in grant
   14         applications; deleting provisions relating to the
   15         disbursal of funds; providing an effective date.
   17  Be It Enacted by the Legislature of the State of Florida:
   19         Section 1. Section 395.6061, Florida Statutes, is amended
   20  to read:
   21         395.6061 Rural hospital capital improvement.—
   22         (1) LEGISLATIVE FINDINGS AND INTENT.—The Legislature finds
   23  that rural hospitals have limited ability to increase operating
   24  revenues or to access other public or private funding sources
   25  that are needed to maintain critical infrastructure, including,
   26  but not limited to, the replacement of high-cost medical care
   27  equipment or improvements to facility infrastructure. Rural
   28  hospitals that do not have reasonable access to alternative
   29  sources of revenue to pay for critical infrastructure needs are
   30  at risk, and patient access, care, and quality are threatened.
   31  Therefore, the Legislature finds that it is necessary to
   32  establish the Florida Rural Hospital Capital Improvement
   33  Competitive Grant Program for eligible rural hospitals to ensure
   34  their sustainability.
   36  GRANT PROGRAM.—The Department of Health shall establish and
   37  administer the Florida Rural Hospital Capital Improvement
   38  Competitive Grant Program for rural hospitals. Subject to annual
   39  appropriation, the department shall establish grant awards up to
   40  $750,000 for each hospital that meets the eligibility
   41  requirements in subsection (3). Grants must be made available to
   42  eligible rural hospitals based on the competitive grant program
   43  and on criteria established by the department.
   44         (3) GRANT ELIGIBILITY.—In order to be eligible for a grant
   45  award, a hospital must be a rural hospital, as defined in s.
   46  395.602, and must demonstrate that:
   47         (a)Grant funds are necessary to maintain or improve the
   48  quality of its health care services;
   49         (b)There is a return on investment to the taxpayers of
   50  this state; and
   51         (c)A satisfactory recordkeeping system will be in place to
   52  account for the expenditures of grant funds within the rural
   53  county.
   54         (4) AWARD OF GRANTS.—The department shall establish by rule
   55  a grant application process and criteria for the evaluation of
   56  applications. The department shall score and rank grant
   57  applications based on criteria that must include, at a minimum,
   58  the following:
   59         (a)The social and economic benefit to the surrounding
   60  community.
   61         (b)The promotion of economic development in the
   62  surrounding community.
   63         (c)The expansion of available services to the underserved
   64  populations in the community.
   65         (d)The availability of private or public matching funds,
   66  or in-kind contributions, for the requested grant funds.
   67         (5) ALLOWABLE USES OF FUNDS.—Grant awards may be used only
   68  for hospital medical equipment purchases or facility
   69  infrastructure improvements in the rural area serviced by the
   70  grantee.
   71         (6) REPORT.—The department shall provide an annual report
   72  to the Governor, the President of the Senate, and the Speaker of
   73  the House of Representatives which includes the list of grantees
   74  and, for each grantee, the amount awarded, a brief description
   75  detailing what the funds will be used for, the anticipated
   76  outcomes to be achieved, and the return on investment to the
   77  taxpayers of this state. There is established a rural hospital
   78  capital improvement grant program.
   79         (1) A rural hospital as defined in s. 395.602 may apply to
   80  the department for a grant. The grant application must provide
   81  information that includes:
   82         (a) A statement indicating the problem the rural hospital
   83  proposes to solve with the grant funds;
   84         (b) The strategy proposed to resolve the problem;
   85         (c) The organizational structure, financial system, and
   86  facilities that are essential to the proposed solution;
   87         (d) The projected longevity of the proposed solution after
   88  the grant funds are expended;
   89         (e) Evidence of participation in a rural health network as
   90  defined in s. 381.0406;
   91         (f) Evidence that the rural hospital has difficulty in
   92  obtaining funding or that funds available for the proposed
   93  solution are inadequate;
   94         (g) Evidence that the grant funds will assist in
   95  maintaining or returning the hospital to an economically stable
   96  condition or that any plan for closure or realignment of
   97  services will involve development of innovative alternatives for
   98  the discontinued services;
   99         (h) Evidence of a satisfactory record-keeping system to
  100  account for grant fund expenditures within the rural county;
  101         (i) A rural health network plan that includes a description
  102  of how the plan was developed, the goals of the plan, the links
  103  with existing health care providers under the plan, indicators
  104  quantifying the hospital’s financial well-being, measurable
  105  outcome targets, and the current physical and operational
  106  condition of the hospital.
  107         (2) Each rural hospital as defined in s. 395.602 shall
  108  receive a minimum of $100,000 annually, subject to legislative
  109  appropriation, upon application to the Department of Health, for
  110  projects to acquire, repair, improve, or upgrade systems,
  111  facilities, or equipment.
  112         (3) Any remaining funds shall annually be disbursed to
  113  rural hospitals in accordance with this section. The Department
  114  of Health shall establish, by rule, criteria for awarding grants
  115  for any remaining funds, which must be used exclusively for the
  116  support and assistance of rural hospitals as defined in s.
  117  395.602, including criteria relating to the level of
  118  uncompensated care rendered by the hospital, the participation
  119  in a rural health network as defined in s. 381.0406, and the
  120  proposed use of the grant by the rural hospital to resolve a
  121  specific problem. The department must consider any information
  122  submitted in an application for the grants in accordance with
  123  subsection (1) in determining eligibility for and the amount of
  124  the grant, and none of the individual items of information by
  125  itself may be used to deny grant eligibility.
  126         (4) The department shall ensure that the funds are used
  127  solely for the purposes specified in this section. The total
  128  grants awarded pursuant to this section shall not exceed the
  129  amount appropriated for this program.
  130         Section 2. This act shall take effect upon becoming a law.