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Minutes for HB2522 - Committee on Appropriations
Short Title
Establishing the rural hospital innovation grant program.
Minutes Content for Wed, Feb 19, 2020
Chairman Waymaster opened the hearing on the bill.
Megan Leopold, Legislative Research Department, presented the bill brief (Attachment 2). This bill would establish the Rural Hospital Innovation Grant Program with the goal of strengthening healthcare systems and increase access to healthcare services in eligible counties. The program would be administered by the Kansas Department of Health and Environment (KDHE). A review of the grant application, award and reporting process followed. The fiscal note is for $30 million, which includes $10 million SGF and $20 million from private stakeholder funds raised through state match requirements.
Ms. Leopold responded to questions by Committee members. Additional information will be forthcoming regarding decisions related to contractual issues. Upon acceptance of a grant award, a match basis of $2 of private stakeholder moneys for every $1 of state monies would be required. A market study would be included in the grant as an applicable expense.
Chad Austin, Executive Director, Kansas Hospital Association, presented testimony as a proponent of the bill (Attachment 3). Rural hospitals are operating at a financial loss in part due to changing demographics, and reimbursement reductions, while continuing to provide quality, accessible care to their communities. The Kansas Hospital Association and member hospitals are committed to working collaboratively to sustain health care services in rural communities.
Mr. Austin responded to questions from Committee members regarding the matching program. He suggested further clarification regarding implementation of this program as related to foundation contributions to the fund without knowing if there community will be an award recipient. Jill Wolters, Office of Revisor of Statutes, stated that there has to be private money in the fund to apply for the grant. If there are specifics tied to the grant money, this language would need to be added to the bill.
Written testimony as proponents of the bill were provided by Trey Cocking (Attachment 4), Deputy Director, League of Kansas Municipalities and Jay Hall, Kansas Association of Counties (Attachment 5).
Chairman Waymaster closed the hearing on the bill.
