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Hospital Community Benefit

Concerning changes to the hospital community benefit, and, in connection therewith, making an appropriation.
2023 Regular Session
Health Care & Health Insurance
Bill Summary

The act makes changes to hospital community benefit activity requirements and imposes certain requirements on the public meetings regarding each reporting hospital's community benefit activities and community implementation plan (plan). The act requires each reporting hospital to:

  • Expand upon the manner in which the hospital invites the public to attend meetings, including by posting the invitation on the hospital's website and social media accounts and by distributing the invitation via the reporting hospital's electronic newsletter, e-mail lists, or any other communications between the hospital and the community it serves at least 30 days before the meeting;
  • Share at each public meeting the community benefit activities from the previous year, the amount funded for each activity, and a description of how the activities and funding align with community priorities;
  • Submit a report to the department of health care policy and financing(state department) that details who attended the public meeting, the topics discussed at the meeting, and any decisions made as a result of the discussion, particularly as they pertain to community benefit priorities, and community feedback received and how the hospital plans to incorporate the feedback into its community beneift implementation plan;
  • Make each report available to the public; and
  • Present priority areas identified in its most recent community health needs assessment and any other community benefit investment option it recommends.

The act requires the state medical services board to promulgate rules governing accommodation standards for the public meetings and include in its annual report a summary of the estimated federal, state, and property tax exemptions received by each hospital.

The act requires the state department to:

  • Conduct a stakeholder meeting to determine best practices to ensure diverse input from local community members is used to determine community priorities as well as best practices for hospitals to collaborate with local public health agencies and community organizations to reduce redundant community needs assessments.
  • Take remedial action if a hospital fails to comply with the hospital community benefit activity requirements. Such remedial action can include weekly fines between $5,000 and $20,000 for each violation.

The act requires a reporting hospital to expend any amount fined on community benefit investment priorities described in its current community benefit implementation plan. The reporting hospital must include information on how the money from fines was expended in the reporting hospital's annual report submitted to the state department.

The act appropriates $50,000 from the healthcare affordability and sustainability fee cash fund to the state department for use by the office of the executive director of the state department, $100,000 from reappropriated funds received from the state department to the department of revenue for personal services, and $50,000 in anticipated federal funds for transfer to the department of revenue.

APPROVED by Governor May 10, 2023

EFFECTIVE August 7, 2023

NOTE: This act was passed without a safety clause and takes effect 90 days after sine die.
(Note: This summary applies to this bill as enacted.)


Became Law


Bill Text

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The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details