Sen. Jeff Mullis and Rep. Jason Spencer are sponsoring companion bills that could cause the biggest shake-up to hospital governance since a 1941 Georgia law, which created mechanisms for cities and counties to build their own hospitals, according to the report.
Both lawmakers are concerned by hospital boards in their districts, related to hospital closures and how certain hospitals are spending money. The legislation would present new requirements for hospitals’ governance structures, requiring regular audits submitted to the state. If a hospital fails or refuses to provide an annual audit, the state may withhold “all or any” portion of state grants or funds.
Every hospital’s board would also need to appoint a county commissioner, who would act as a full voting member.
Opponents to the bills have said it is not logical to address local issues with sweeping statewide reforms. “The bill appears to be set up to address local issues. If these are local issues, there ought to be local legislation to address the issues,” Jimmy Lewis, a lobbyist for the rural hospital association HomeTown Health, said in the report. “A statewide bill is probably overkill.”
The companion bills are Senate bill 302, sponsored by Sen. Mullis, and House bill 839, sponsored by Rep. Spencer.
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