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HF754 • 2026

A bill for an act relating to health care including a funding model for the rural health care system; the elimination of several health care-related award, grant, residency, and fellowship programs; establishment of a health care professional incentive program; Medicaid graduate medical education; the health facilities council; and the Iowa health information network, making appropriations, and including effective date provisions.(Formerly HSB 191 ; See HF 972 .)

A bill for an act relating to health care including a funding model for the rural health care system; the elimination of several health care-related award, grant, residency, and fellowship programs; establishment of a health care professional incentive program; Medicaid graduate medical education; the health facilities council; and the Iowa health information network, making appropriations, and including effective date provisions.(Formerly HSB 191 ; See HF 972 .)

Budget Education Healthcare
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
COMMITTEE ON HEALTH AND HUMAN SERVICES
Last action
2025-03-31
Official status
Withdrawn. H.J. 871 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act relating to health care including a funding model for the rural health care system; the elimination of several health care-related award, grant, residency, and fellowship programs; establishment of a health care professional incentive program; Medicaid graduate medical education; the health facilities council; and the Iowa health information network, making appropriations, and including effective date provisions.(Formerly HSB 191 ; See HF 972 .)

A bill for an act relating to health care including a funding model for the rural health care system; the elimination of several health care-related award, grant, residency, and fellowship programs; establishment of a health care professional incentive program; Medicaid graduate medical education; the health facilities council; and the Iowa health information network, making appropriations, and including effective date provisions.(Formerly HSB 191 ; See HF 972 .)

What This Bill Does

  • A bill for an act relating to health care including a funding model for the rural health care system; the elimination of several health care-related award, grant, residency, and fellowship programs; establishment of a health care professional incentive program; Medicaid graduate medical education; the health facilities council; and the Iowa health information network, making appropriations, and including effective date provisions.(Formerly HSB 191 ; See HF 972 .)

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-03-31 Iowa Legislature

    Withdrawn. H.J. 871 .

  2. 2025-03-21 Iowa Legislature

    Committee report approving bill, renumbered as HF 972 .

  3. 2025-03-20 Iowa Legislature

    Committee vote: Yeas, 22. Nays, 0. Excused, 3. H.J. 768 .

  4. 2025-03-20 Iowa Legislature

    Committee report, recommending amendment and passage. H.J. 768 .

  5. 2025-03-18 Iowa Legislature

    Subcommittee recommends passage.

  6. 2025-03-18 Iowa Legislature

    Subcommittee Meeting: 03/18/2025 12:45PM House Lounge.

  7. 2025-03-17 Iowa Legislature

    Subcommittee: Meyer, A., Baeth and Sorensen. H.J. 676 .

  8. 2025-03-05 Iowa Legislature

    Introduced, referred to Appropriations. H.J. 514 .

Official Summary Text

A bill for an act relating to health care including a funding model for the rural health care system; the elimination of several health care-related award, grant, residency, and fellowship programs; establishment of a health care professional incentive program; Medicaid graduate medical education; the health facilities council; and the Iowa health information network, making appropriations, and including effective date provisions.(Formerly HSB 191 ; See HF 972 .)

Current Bill Text

Read the full stored bill text
House

File

754

-

Introduced

HOUSE

FILE

754

BY

COMMITTEE

ON

HEALTH

AND

HUMAN

SERVICES

(SUCCESSOR

TO

HSB

191)

A

BILL

FOR

An

Act

relating

to

health

care

including

a

funding

model

for

1

the

rural

health

care

system;

the

elimination

of

several

2

health

care-related

award,

grant,

residency,

and

fellowship

3

programs;

establishment

of

a

health

care

professional

4

incentive

program;

Medicaid

graduate

medical

education;

the

5

health

facilities

council;

and

the

Iowa

health

information

6

network,

making

appropriations,

and

including

effective

date

7

provisions.

8

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

9

TLSB

1555HV

(3)

91

lh/ko

H.F.

754

DIVISION

I

1

HEALTH

CARE

HUB-AND-SPOKE

PARTNERSHIP

FUNDING

MODEL

2

Section

1.

HEALTH

CARE

HUB-AND-SPOKE

PARTNERSHIP

FUNDING

3

MODEL

APPROVAL.

The

department

of

health

and

human

services

4

shall

submit

to

the

centers

for

Medicare

and

Medicaid

services

5

of

the

United

States

department

of

health

and

human

services

6

a

request

for

approval

for

a

health

care

hub-and-spoke

7

partnership

funding

model

for

the

purpose

of

improving

Iowa’s

8

rural

health

system

to

establish

sufficient

financial

support

9

for

collaboration

among

regional

health

care

providers

in

rural

10

areas

to

transform

health

care

delivery

to

provide

quality

and

11

sustainable

care.

12

Sec.

2.

EFFECTIVE

DATE.

This

division

of

this

Act,

being

13

deemed

of

immediate

importance,

takes

effect

upon

enactment.

14

DIVISION

II

15

ELIMINATION

OF

PRIMECARRE

PROGRAMS

——

DEPARTMENT

OF

HEALTH

AND

16

HUMAN

SERVICES

17

Sec.

3.

Section

135.107,

subsection

1,

Code

2025,

is

amended

18

by

adding

the

following

new

paragraph:

19

NEW

PARAGRAPH

.

f.

Coordinate

with

the

college

student

aid

20

commission

to

administer

the

health

professional

incentive

21

program

created

in

section

256.222.

22

Sec.

4.

Section

135.107,

subsections

2

and

3,

Code

2025,

are

23

amended

by

striking

the

subsections.

24

Sec.

5.

Section

135B.33,

subsection

3,

Code

2025,

is

amended

25

to

read

as

follows:

26

3.

The

health

facilities

may

seek

technical

assistance

27

or

apply

for

matching

grant

funds

for

the

plan

development.

28

The

department

shall

require

compliance

with

subsection

1

,

29

paragraphs

“a”

through

“h”

,

when

the

facility

applies

for

30

matching

grant

funds.

31

Sec.

6.

TRANSITION

PROVISIONS

——

ACCOUNT.

32

1.

The

department

of

health

and

human

services

shall

make

33

loan

repayments

pursuant

to

a

loan

repayment

program

contract,

34

including

a

United

States

department

of

health

and

human

35

-1-

LSB

1555HV

(3)

91

lh/ko

1/

40

H.F.

754

services

state

loan

repayment

program

contract,

executed

on

1

or

before

December

31,

2025,

under

the

primary

care

provider

2

loan

repayment

program

in

section

135.107,

Code

2025,

if

the

3

recipient

remains

in

compliance

with

all

obligations

under

the

4

loan

repayment

program

contract.

5

2.

a.

The

department

of

health

and

human

services

shall

6

create

an

account

for

deposit

of

any

moneys

encumbered

or

7

obligated

pursuant

to

a

loan

repayment

program

contract

as

8

specified

in

subsection

1.

The

department

shall

ensure

that

9

the

encumbered

and

obligated

moneys

remain

available

for

the

10

duration

of

the

loan

repayment

program

contract.

Moneys

in

the

11

account

are

appropriated

to

the

department

for

the

purposes

of

12

this

section.

13

b.

Notwithstanding

section

8.33,

any

balance

in

the

account

14

shall

not

revert

but

shall

remain

available

for

the

duration

of

15

such

loan

repayment

program

contracts.

Notwithstanding

section

16

12C.7,

subsection

2,

interest

or

earnings

on

moneys

deposited

17

in

the

account

shall

be

credited

to

the

account.

18

c.

Upon

expiration

of

all

loan

repayment

program

contract

19

periods

and

the

expenditure

of

all

moneys

encumbered

and

20

obligated

under

such

loan

repayment

contracts,

any

unencumbered

21

or

unobligated

moneys

remaining

in

the

account

created

under

22

this

section

shall

be

deposited

in

the

health

care

professional

23

incentive

program

fund

created

in

section

256.222,

as

enacted

24

by

this

Act.

25

DIVISION

III

26

ELIMINATION

OF

HEALTH

CARE-RELATED

LOAN

REPAYMENT

AND

FINANCIAL

27

AWARD

PROGRAMS

——

COLLEGE

STUDENT

AID

COMMISSION

28

Sec.

7.

REPEAL.

Sections

256.221,

256.223,

256.224,

and

29

256.225,

Code

2025,

are

repealed.

30

Sec.

8.

TRANSITION

PROVISIONS.

31

1.

The

college

student

aid

commission

shall

make

loan

32

repayments

pursuant

to

a

program

agreement

entered

into

on

or

33

before

June

30,

2025,

by

an

eligible

student

and

the

commission

34

under

the

rural

Iowa

primary

care

loan

repayment

program

35

-2-

LSB

1555HV

(3)

91

lh/ko

2/

40

H.F.

754

in

section

256.221,

Code

2025,

if

the

student

remains

in

1

compliance

with

all

obligations

under

the

program

agreement.

2

2.

The

college

student

aid

commission

shall

make

loan

3

repayments

pursuant

to

a

contract

entered

into

on

or

before

4

June

30,

2025,

by

a

health

care

professional

and

the

commission

5

under

the

health

care

professional

recruitment

program

in

6

section

256.223,

Code

2025,

if

the

health

care

professional

7

remains

in

compliance

with

all

obligations

under

the

contract.

8

3.

The

college

student

aid

commission

shall

provide

the

9

annual

award

to

a

recipient

selected

on

or

before

June

30,

10

2025,

for

an

award

under

the

health

care

award

program

in

11

section

256.224,

Code

2025.

12

4.

The

college

student

aid

commission

shall

make

loan

13

repayments

pursuant

to

a

program

agreement

entered

into

on

or

14

before

June

30,

2025,

by

a

mental

health

professional

and

the

15

commission

under

the

mental

health

professional

loan

repayment

16

program

in

section

256.225,

Code

2025,

if

the

mental

health

17

professional

remains

in

compliance

with

all

obligations

under

18

the

program

agreement.

19

Sec.

9.

TRANSFER

OF

MONEYS.

On

the

effective

date

of

this

20

division

of

this

Act,

any

unencumbered

and

unobligated

moneys

21

remaining

in

the

following

funds

shall

be

transferred

to

the

22

health

care

professional

incentive

program

fund

created

in

23

section

256.222,

as

enacted

in

this

Act:

24

1.

The

rural

Iowa

primary

care

trust

fund

created

in

section

25

256.221,

subsection

12,

Code

2025.

26

2.

The

health

care

professional

recruitment

fund

created

in

27

section

256.223,

subsection

4,

Code

2025.

28

3.

The

health

care

award

fund

created

in

section

256.224,

29

subsection

6,

Code

2025.

30

4.

The

mental

health

professional

loan

repayment

fund

31

created

in

section

256.225,

subsection

7,

Code

2025.

32

Sec.

10.

TRANSITION

——

ACCOUNTS.

33

1.

The

college

student

aid

commission

shall

create

34

individual

accounts

for

the

deposit

of

any

moneys

encumbered

or

35

-3-

LSB

1555HV

(3)

91

lh/ko

3/

40

H.F.

754

obligated

relating

to

a

loan

repayment

or

award

funded

under

1

each

of

the

following

programs:

2

a.

The

rural

Iowa

primary

care

loan

repayment

program

under

3

section

256.221,

Code

2025.

4

b.

The

health

care

professional

recruitment

program

under

5

section

256.223,

Code

2025.

6

c.

The

health

care

award

program

under

section

256.224,

Code

7

2025.

8

d.

The

mental

health

professional

loan

repayment

program

9

under

section

256.225,

Code

2025.

10

2.

Notwithstanding

section

8.33,

any

balance

in

any

of

11

the

accounts

created

under

subsection

1

shall

not

revert

but

12

shall

remain

available

for

the

duration

of

all

applicable

13

loan

repayments

and

awards.

Notwithstanding

section

12C.7,

14

subsection

2,

interest

or

earnings

on

moneys

deposited

in

each

15

account

shall

be

credited

to

the

respective

account.

16

3.

Upon

expiration

of

all

program

agreement,

contract,

17

and

award

disbursement

periods

and

the

expenditure

of

all

18

moneys

encumbered

and

obligated

under

such

program

agreements,

19

contracts,

and

awards,

any

unencumbered

or

unobligated

moneys

20

remaining

in

the

accounts

created

under

this

section

shall

be

21

deposited

in

the

health

care

professional

incentive

program

22

fund

created

in

section

256.222,

as

enacted

by

this

Act.

23

DIVISION

IV

24

HEALTH

CARE

PROFESSIONAL

INCENTIVE

PROGRAM

ESTABLISHED

25

Sec.

11.

NEW

SECTION

.

256.222

Health

care

professional

26

incentive

program

——

fund.

27

1.

Definitions.

For

purposes

of

this

section,

unless

the

28

context

otherwise

requires:

29

a.

“Award”

means

either

of

the

following:

30

(1)

A

loan

repayment

made

on

behalf

of

an

eligible

health

31

care

professional

on

the

total

amount

owed,

including

principal

32

and

interest,

by

the

eligible

health

care

professional

on

any

33

of

the

following:

34

(a)

A

federally

guaranteed

Stafford

loan

under

the

federal

35

-4-

LSB

1555HV

(3)

91

lh/ko

4/

40

H.F.

754

family

education

loan

program

or

the

federal

direct

loan

1

program.

2

(b)

A

federal

grad

plus

loan.

3

(c)

A

consolidated

federally

guaranteed

Stafford

loan

under

4

the

federal

family

education

loan

program

or

the

federal

direct

5

loan

program.

6

(d)

A

consolidated

federal

grad

plus

loan.

7

(2)

An

income

bonus

paid

to

an

eligible

health

care

8

professional.

9

b.

“Commission”

means

the

college

student

aid

commission.

10

c.

“Department”

means

the

department

of

health

and

human

11

services.

12

d.

“Eligible

health

care

profession”

means

health

care

13

occupational

categories

that

are

in

high

demand,

as

determined

14

and

maintained

on

a

list

by

the

department,

and

may

include

but

15

are

not

limited

to

physicians,

physician

assistants,

registered

16

nurses,

nurse

practitioners,

nurse

educators,

and

mental

health

17

professionals.

18

e.

“Eligible

health

care

professional”

means

an

individual

19

currently

employed,

or

who

will

be

employed,

in

an

eligible

20

health

care

profession

that

is

located

in

an

eligible

practice

21

area.

22

f.

“Eligible

practice

area”

means

a

geographic

region

23

or

county

in

this

state

that

has

a

shortage

of

health

care

24

professionals

as

determined

by

the

department.

25

g.

“Employment

obligation”

means

the

number

of

consecutive

26

years

an

eligible

health

care

professional

must

practice.

27

(1)

If

practicing

full-time,

which

means

two

thousand

28

eighty

hours

of

work

in

a

calendar

year,

including

all

paid

29

holidays,

vacations,

sick

time,

and

other

paid

leave,

an

30

eligible

health

care

professional

must

practice

for

five

years.

31

(2)

If

practicing

part-time,

which

means

one

thousand

five

32

hundred

sixty

hours

of

work

in

a

calendar

year,

including

all

33

paid

holidays,

vacations,

sick

time,

and

other

paid

leave,

34

an

eligible

health

care

professional

must

practice

for

seven

35

-5-

LSB

1555HV

(3)

91

lh/ko

5/

40

H.F.

754

years.

1

h.

“Program”

means

the

health

care

professional

incentive

2

program

established

in

this

section.

3

2.

Program

established.

The

health

care

professional

4

incentive

program

is

established

and

shall

be

administered

5

by

the

commission,

in

coordination

with

the

department,

for

6

the

purpose

of

offering

awards

to

recruit

and

retain

eligible

7

health

care

professionals

for

employment

in

eligible

practice

8

areas.

For

the

fiscal

year

beginning

July

1,

2025,

and

9

each

fiscal

year

thereafter,

the

commission,

in

coordination

10

with

the

department,

shall

determine

the

number

of

awards

11

available

for

each

eligible

health

care

profession

prior

to

the

12

commencement

of

the

fiscal

year.

13

3.

Legislative

intent.

It

is

the

intent

of

the

general

14

assembly

that

the

program

shall

not

interfere

with

local

15

community

investments

to

recruit

and

retain

health

care

16

professionals.

17

4.

Exceptions.

An

eligible

health

care

professional

shall

18

be

ineligible

for

the

program

if

the

eligible

health

care

19

professional

is

currently

participating

in,

or

has

participated

20

in,

any

of

the

following:

21

a.

The

primary

care

provider

loan

repayment

program

pursuant

22

to

section

135.107,

Code

2025.

23

b.

The

rural

Iowa

primary

care

loan

repayment

program

24

pursuant

to

section

256.221,

Code

2025.

25

c.

The

health

care

professional

recruitment

program

pursuant

26

to

section

256.223,

Code

2025.

27

d.

The

health

care

award

program

pursuant

to

section

28

256.224,

Code

2025.

29

e.

The

mental

health

professional

loan

repayment

program

30

pursuant

to

section

256.225,

Code

2025.

31

5.

Program

requirements.

32

a.

An

eligible

health

care

professional

may

submit

an

33

application

for

the

program

to

the

commission

in

the

form

and

34

manner

prescribed

by

the

commission.

The

applicant

shall

35

-6-

LSB

1555HV

(3)

91

lh/ko

6/

40

H.F.

754

elect

to

receive

an

award

as

either

a

loan

repayment

or

an

1

income

bonus

if

selected

for

the

program,

and

shall

submit

any

2

additional

information

requested

by

the

commission.

3

b.

If

selected

for

an

award,

the

eligible

health

care

4

professional

and

the

commission

shall

execute

a

program

5

agreement

that

specifies

all

of

the

following:

6

(1)

The

date

the

eligible

health

care

professional’s

7

employment

obligation

begins,

which

shall

be

no

later

than

six

8

months

from

the

date

the

program

agreement

is

executed.

9

(2)

The

date

the

health

care

professional’s

employment

10

obligation

terminates.

11

(3)

Whether

the

award

is

a

loan

repayment

or

an

income

12

bonus,

and

the

terms

and

conditions

related

to

the

award,

13

including

the

aggregate

award

amount

that

the

eligible

health

14

care

professional

will

receive.

15

(4)

Requirements

regarding

the

eligible

health

care

16

professional’s

license

to

practice

in

this

state

while

17

participating

in

the

program.

18

(5)

All

other

terms

and

conditions

agreed

to

by

the

eligible

19

health

care

professional

and

the

commission.

20

6.

Awards.

21

a.

Upon

verifying

the

eligible

health

care

professional

is

22

in

compliance

with

all

terms

of

the

program

agreement

executed

23

pursuant

to

subsection

5,

paragraph

“b”

,

the

commission

shall

24

pay

the

eligible

health

care

professional’s

award

annually

as

25

follows:

26

(1)

For

a

full-time

employment

obligation,

the

award

shall

27

be

paid

as

follows:

28

(a)

An

amount

equal

to

twenty

percent

of

the

aggregate

award

29

shall

be

paid

to

the

eligible

health

care

professional

after

30

the

completion

of

the

first

year

of

the

eligible

health

care

31

professional’s

employment

obligation.

32

(b)

An

amount

equal

to

fifteen

percent

of

the

aggregate

33

award

shall

be

paid

to

the

eligible

health

care

professional

34

after

the

completion

of

the

second

year,

the

third

year,

and

35

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754

the

fourth

year

of

the

eligible

health

care

professional’s

1

employment

obligation.

2

(c)

An

amount

equal

to

thirty-five

percent

of

the

aggregate

3

award

shall

be

paid

to

the

eligible

health

care

professional

4

after

the

completion

of

the

fifth

year

of

the

eligible

health

5

care

professional’s

employment

obligation.

6

(2)

For

a

part-time

employment

obligation,

the

aggregate

7

award

shall

be

prorated

by

the

commission.

8

b.

A

minimum

of

every

five

years,

the

commission,

in

9

consultation

with

the

department,

shall

establish

a

list

of

the

10

eligible

health

care

professions

and

the

aggregate

award

amount

11

for

each

eligible

health

care

profession.

The

aggregate

award

12

amount

shall

not

exceed

two

hundred

thousand

dollars.

13

c.

An

individual

who

executed

a

program

agreement

under

14

subsection

5,

paragraph

“b”

,

prior

to

the

exclusion

of

an

15

eligible

health

care

professional

from

the

list

established

16

under

paragraph

“b”

shall

remain

eligible

for

the

program

per

17

the

terms

of

the

individual’s

program

agreement.

18

7.

Health

care

professional

incentive

program

fund.

A

19

health

care

professional

incentive

program

fund

is

created

in

20

the

state

treasury

under

the

control

of

the

commission.

All

21

moneys

deposited

or

paid

into

the

fund

are

appropriated

to

the

22

commission

to

be

used

for

awards

as

provided

in

this

section.

23

Notwithstanding

section

8.33,

moneys

in

the

fund

that

remain

24

unencumbered

or

unobligated

at

the

close

of

each

fiscal

year

25

shall

not

revert

but

shall

remain

available

for

expenditure.

26

Notwithstanding

section

12C.7,

subsection

2,

interest

or

27

earnings

on

moneys

in

the

fund

shall

be

credited

to

the

fund

28

and

may

be

utilized

by

the

commission

for

administrative

costs.

29

8.

Rules.

The

commission,

in

coordination

with

the

30

department,

shall

adopt

rules

pursuant

to

chapter

17A

to

31

administer

this

section.

32

Sec.

12.

EFFECTIVE

DATE.

This

division

of

this

Act,

being

33

deemed

of

immediate

importance,

takes

effect

upon

enactment.

34

DIVISION

V

35

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754

ELIMINATION

OF

HEALTH

CARE-RELATED

GRANT,

RESIDENCY,

AND

1

FELLOWSHIP

PROGRAMS

——

DEPARTMENT

OF

HEALTH

AND

HUMAN

SERVICES

2

Sec.

13.

Section

135.179,

subsection

2,

Code

2025,

is

3

amended

to

read

as

follows:

4

2.

Funding

for

the

program

may

be

provided

through

the

5

health

care

workforce

shortage

fund

or

the

fulfilling

Iowa’s

6

need

for

dentists

matching

grant

program

account

created

in

7

section

135.175

.

The

purpose

of

the

program

is

to

establish,

8

expand,

or

support

the

placement

of

dentists

in

dental

or

rural

9

shortage

areas

across

the

state

by

providing

education

loan

10

repayments.

11

Sec.

14.

Section

249M.4,

subsection

2,

Code

2025,

is

amended

12

to

read

as

follows:

13

2.

Moneys

in

the

trust

fund

shall

be

used,

subject

to

14

their

appropriation

by

the

general

assembly,

by

the

department

15

to

reimburse

participating

hospitals

the

medical

assistance

16

program

upper

payment

limit

for

inpatient

and

outpatient

17

hospital

services

as

calculated

in

this

section

.

Following

18

payment

of

such

upper

payment

limit

to

participating

hospitals,

19

any

remaining

funds

in

the

trust

fund

on

an

annual

basis

may

be

20

used

for

any

of

the

following

purposes:

21

a.

To

support

medical

assistance

program

utilization

22

shortfalls.

23

b.

To

maintain

the

state’s

capacity

to

provide

access

to

and

24

delivery

of

services

for

vulnerable

Iowans.

25

c.

To

fund

the

health

care

workforce

support

initiative

26

created

pursuant

to

section

135.175

.

27

d.

c.

To

support

access

to

health

care

services

for

28

uninsured

Iowans.

29

e.

d.

To

support

Iowa

hospital

programs

and

services

which

30

expand

access

to

health

care

services

for

Iowans.

31

Sec.

15.

REPEAL.

Sections

135.175,

135.176,

135.178,

and

32

135.193,

Code

2025,

are

repealed.

33

Sec.

16.

TRANSITION

PROVISIONS.

34

1.

a.

The

department

of

health

and

human

services

shall

35

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754

provide

matching

state

funding

to

a

sponsor

awarded

on

or

1

before

June

30,

2025,

under

the

medical

residency

training

2

state

matching

grants

program

in

section

135.176,

Code

2025,

3

until

all

residents

in

the

funded

residencies

have

completed

or

4

left

the

program.

5

b.

The

department

of

health

and

human

services

shall

provide

6

matching

state

funding

to

a

sponsor

for

medical

residency

7

training

program

liability

costs

awarded

on

or

before

June

8

30,

2025,

under

the

medical

residency

training

state

matching

9

grants

program

in

section

135.176,

Code

2025,

until

June

30,

10

2026.

11

2.

The

department

of

health

and

human

services

shall

provide

12

matching

state

funding

to

a

sponsor

awarded

on

or

before

June

13

30,

2025,

under

the

nurse

residency

state

matching

grants

14

program

in

section

135.178,

Code

2025,

until

all

residents

have

15

completed

or

left

the

nurse

residency

programs.

16

3.

The

department

of

health

and

human

services

shall

fund

17

a

fellowship

position

pursuant

to

a

program

agreement

entered

18

into

on

or

before

June

30,

2025,

by

a

participating

teaching

19

hospital

and

a

participating

fellow

under

the

state-funded

20

family

medicine

obstetrics

fellowship

program

in

section

21

135.193,

Code

2025,

if

the

participating

fellow

remains

in

22

compliance

with

all

obligations

under

the

program

agreement.

23

4.

The

department

of

health

and

human

services

shall

fund

24

a

rural

psychiatric

residency

for

a

resident

selected

on

or

25

before

June

30,

2025,

until

all

residents

have

completed

26

or

left

the

rural

psychiatric

residencies,

pursuant

to

27

appropriations

as

provided

in

the

following:

28

a.

2024

Iowa

Acts,

chapter

1157,

section

5,

subsection

3,

29

and

2024

Iowa

Acts,

chapter

1157,

section

22,

subsection

5.

30

b.

2023

Iowa

Acts,

chapter

112,

section

5,

subsection

4,

31

paragraph

“j”,

as

amended

by

2024

Iowa

Acts,

chapter

1157,

32

section

29.

33

c.

2022

Iowa

Acts,

chapter

1131,

section

3,

subsection

4,

34

paragraph

“j”,

as

amended

by

2024

Iowa

Acts,

chapter

1157,

35

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section

23.

1

d.

2021

Iowa

Acts,

chapter

182,

section

3,

subsection

4,

2

paragraph

“j”.

3

e.

2019

Iowa

Acts,

chapter

85,

section

3,

subsection

4,

4

paragraph

“j”,

as

amended

by

2020

Iowa

Acts,

chapter

1121,

5

section

19.

6

Sec.

17.

TRANSFER

OF

MONEYS.

Notwithstanding

section

8.33

7

or

any

other

provision

to

the

contrary,

any

unobligated

or

8

unencumbered

moneys

in

any

of

the

following

accounts

or

funds

9

or

constituting

any

specified

appropriation,

shall

not

revert

10

but

are

appropriated

to

the

department

of

health

and

human

11

services

to

fund

Medicaid

graduate

medical

education

efforts.

12

1.

The

health

care

workforce

shortage

fund

created

in

13

section

135.175,

subsection

1,

paragraph

“b”,

Code

2025.

14

2.

The

medical

residency

training

account

created

in

15

section

135.175,

subsection

5,

paragraph

“a”,

Code

2025.

16

3.

The

nurse

residency

state

matching

grants

program

17

account

created

in

section

135.175,

subsection

5,

paragraph

18

“b”,

Code

2025.

19

4.

The

health

care

workforce

shortage

national

initiatives

20

account

created

in

section

135.175,

subsection

5,

paragraph

21

“c”,

Code

2025.

22

5.

The

family

medicine

obstetrics

fellowship

program

fund

23

created

in

section

135.193,

Code

2025.

24

6.

Moneys

appropriated

to

the

department

of

health

and

human

25

services

for

rural

psychiatric

residencies

to

fund

psychiatric

26

residents

to

provide

mental

health

services

in

underserved

27

areas

of

the

state

as

described

in

the

following:

28

a.

2024

Iowa

Acts,

chapter

1157,

section

5,

subsection

3,

29

and

2024

Iowa

Acts,

chapter

1157,

section

22,

subsection

5.

30

b.

2023

Iowa

Acts,

chapter

112,

section

5,

subsection

4,

31

paragraph

“j”,

as

amended

by

2024

Iowa

Acts,

chapter

1157,

32

section

29.

33

c.

2022

Iowa

Acts,

chapter

1131,

section

3,

subsection

4,

34

paragraph

“j”,

as

amended

by

2024

Iowa

Acts,

chapter

1157,

35

-11-

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754

section

23.

1

d.

2021

Iowa

Acts,

chapter

182,

section

3,

subsection

4,

2

paragraph

“j”.

3

e.

2019

Iowa

Acts,

chapter

85,

section

3,

subsection

4,

4

paragraph

“j”,

as

amended

by

2020

Iowa

Acts,

chapter

1121,

5

section

19.

6

Sec.

18.

TRANSITION

——

ACCOUNTS.

7

1.

The

department

of

health

and

human

services

shall

create

8

individual

accounts

for

the

deposit

of

any

moneys

encumbered

9

or

obligated

relating

to

a

grant

awarded,

or

residency

or

10

fellowship

funded,

under

each

of

the

following

programs:

11

a.

The

medical

residency

training

state

matching

grants

12

program

under

section

135.176,

Code

2025.

13

b.

The

nurse

residency

state

matching

grants

program

under

14

section

135.178,

Code

2025.

15

c.

The

state-funded

family

medicine

obstetrics

fellowship

16

program

under

section

135.193,

Code

2025.

17

d.

Rural

psychiatric

residencies

as

described

in

the

18

following:

19

(1)

2024

Iowa

Acts,

chapter

1157,

section

5,

subsection

3,

20

and

2024

Iowa

Acts,

chapter

1157,

section

22,

subsection

5.

21

(2)

2023

Iowa

Acts,

chapter

112,

section

5,

subsection

4,

22

paragraph

“j”,

as

amended

by

2024

Iowa

Acts,

chapter

1157,

23

section

29.

24

(3)

2022

Iowa

Acts,

chapter

1131,

section

3,

subsection

25

4,

paragraph

“j”,

as

amended

by

2024

Iowa

Acts,

chapter

1157,

26

section

23.

27

(4)

2021

Iowa

Acts,

chapter

182,

section

3,

subsection

4,

28

paragraph

“j”.

29

(5)

2019

Iowa

Acts,

chapter

85,

section

3,

subsection

4,

30

paragraph

“j”,

as

amended

by

2020

Iowa

Acts,

chapter

1121,

31

section

19.

32

2.

Notwithstanding

section

8.33,

any

balance

in

any

of

the

33

accounts

created

under

subsection

1

shall

not

revert

but

shall

34

remain

available

for

the

duration

of

all

applicable

grants,

35

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754

residencies,

and

fellowships.

Notwithstanding

section

12C.7,

1

subsection

2,

interest

or

earnings

on

moneys

deposited

in

each

2

account

shall

be

credited

to

the

respective

account.

3

3.

Upon

expiration

of

all

grant,

residency,

and

fellowship

4

periods

and

the

expenditure

of

all

moneys

encumbered

under

5

such

grants,

residencies,

and

fellowships,

any

unencumbered

or

6

unobligated

moneys

remaining

in

any

of

the

accounts

created

7

under

subsection

1

are

appropriated

to

the

department

of

health

8

and

human

services

for

Medicaid

graduate

medical

education

9

efforts.

10

DIVISION

VI

11

ELIMINATION

OF

THE

STATE-FUNDED

PSYCHIATRY

RESIDENCY

AND

12

FELLOWSHIP

POSITIONS

——

UNIVERSITY

OF

IOWA

HOSPITALS

AND

13

CLINICS

14

Sec.

19.

REPEAL.

Section

135.180,

Code

2025,

is

repealed.

15

Sec.

20.

TRANSITION

PROVISIONS.

The

board

of

regents

16

shall

direct

the

university

of

Iowa

hospitals

and

clinics

to

17

distribute

moneys

for

state-funded

psychiatry

residency

and

18

fellowship

positions

approved

and

awarded

on

or

before

June

19

30,

2025,

under

the

state-funded

psychiatry

residency

and

20

fellowship

positions

in

section

135.180,

Code

2025,

until

all

21

residents

and

fellows

have

completed

or

left

the

state-funded

22

psychiatry

residency

or

fellowship

positions.

23

Sec.

21.

TRANSITION

——

ACCOUNT.

24

1.

The

board

of

regents

shall

direct

the

university

of

Iowa

25

hospitals

and

clinics

to

create

an

account

for

the

deposit

26

of

moneys

encumbered

or

obligated

relating

to

residency

and

27

fellowship

positions

funded

under

the

state-funded

psychiatry

28

residency

and

fellowship

positions

under

section

135.180,

Code

29

2025.

30

2.

Notwithstanding

section

8.33,

any

balance

in

the

account

31

created

under

subsection

1

shall

not

revert

but

shall

remain

32

available

for

the

duration

of

all

applicable

residencies

and

33

fellowships.

Notwithstanding

section

12C.7,

subsection

2,

34

interest

or

earnings

on

moneys

deposited

in

the

account

shall

35

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754

be

credited

to

the

account.

1

3.

Upon

expiration

of

all

residency

and

fellowship

periods

2

and

the

expenditure

of

all

moneys

encumbered

under

such

3

residencies

and

fellowships,

any

unencumbered

or

unobligated

4

moneys

remaining

in

the

account

created

under

subsection

1

are

5

appropriated

to

the

department

of

health

and

human

services

for

6

Medicaid

graduate

medical

education

efforts.

7

Sec.

22.

TRANSFER

OF

MONEYS.

Notwithstanding

section

8.33

8

or

any

other

provision

to

the

contrary,

any

unobligated

or

9

unencumbered

moneys

in

the

psychiatry

residency

and

fellowship

10

positions

fund

created

in

section

135.180,

Code

2025,

shall

11

not

revert

but

are

appropriated

to

the

department

of

health

12

and

human

services

to

fund

Medicaid

graduate

medical

education

13

efforts.

14

DIVISION

VII

15

ELIMINATION

OF

THE

HEALTH

FACILITIES

COUNCIL

16

Sec.

23.

Section

10A.711,

subsection

5,

Code

2025,

is

17

amended

by

striking

the

subsection

and

inserting

in

lieu

18

thereof

the

following:

19

5.

“Department”

means

the

department

of

health

and

human

20

services.

21

Sec.

24.

Section

10A.713,

subsection

4,

unnumbered

22

paragraph

1,

Code

2025,

is

amended

to

read

as

follows:

23

A

copy

of

the

application

shall

be

sent

to

the

department

24

of

health

and

human

services

at

the

time

the

application

is

25

submitted

to

the

department.

The

department

shall

not

process

26

applications

for

and

the

council

shall

not

an

intermediate

27

care

facility

for

persons

with

an

intellectual

disability,

or

28

consider

a

new

or

changed

institutional

health

service

for

an

29

intermediate

care

facility

for

persons

with

an

intellectual

30

disability

,

unless

both

of

the

following

conditions

are

met:

31

Sec.

25.

Section

10A.714,

subsection

1,

unnumbered

32

paragraph

1,

Code

2025,

is

amended

to

read

as

follows:

33

In

determining

whether

a

certificate

of

need

shall

be

34

issued,

the

department

and

council

shall

consider

the

35

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following:

1

Sec.

26.

Section

10A.714,

subsection

1,

paragraph

r,

Code

2

2025,

is

amended

to

read

as

follows:

3

r.

The

recommendations

of

staff

personnel

of

the

department

4

assigned

to

the

area

of

certificate

of

need,

concerning

the

5

application

,

if

requested

by

the

council

.

6

Sec.

27.

Section

10A.714,

subsection

2,

unnumbered

7

paragraph

1,

Code

2025,

is

amended

to

read

as

follows:

8

In

addition

to

the

findings

required

with

respect

to

any

9

of

the

criteria

listed

in

subsection

1

of

this

section

,

the

10

council

department

shall

grant

a

certificate

of

need

for

a

new

11

institutional

health

service

or

changed

institutional

health

12

service

only

if

it

the

department

finds

in

writing,

on

the

13

basis

of

data

submitted

to

it

by

the

department

,

that:

14

Sec.

28.

Section

10A.716,

subsection

3,

Code

2025,

is

15

amended

to

read

as

follows:

16

3.

Each

application

accepted

by

the

department

shall

be

17

formally

reviewed

for

the

purpose

of

furnishing

to

the

council

18

the

information

necessary

to

enable

it

the

department

to

19

determine

whether

or

not

to

grant

the

certificate

of

need.

A

20

formal

review

shall

consist

,

at

a

minimum

,

of

the

following

21

steps:

22

a.

Evaluation

of

the

application

against

the

criteria

23

specified

in

section

10A.714

135.63

.

24

b.

A

public

hearing

on

the

application,

to

be

held

prior

to

25

completion

of

the

evaluation

required

by

paragraph

“a”

,

shall

be

26

conducted

by

the

council

.

27

Sec.

29.

Section

10A.719,

Code

2025,

is

amended

to

read

as

28

follows:

29

10A.719

Council

Department

to

make

final

decision.

30

1.

The

department

shall

complete

its

formal

review

of

31

the

application

within

ninety

days

after

acceptance

of

the

32

application,

except

as

otherwise

provided

by

section

10A.722

33

135.71

,

subsection

4

.

Upon

completion

of

the

formal

review,

34

the

council

department

shall

approve

or

deny

the

application.

35

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The

council

department

shall

issue

written

findings

stating

the

1

basis

for

its

decision

on

the

application

,

and

the

department

2

shall

send

copies

of

the

council’s

decision

and

the

written

3

findings

supporting

the

decision

to

the

applicant

and

to

any

4

other

person

who

so

requests.

5

2.

Failure

by

the

council

department

to

issue

a

written

6

decision

on

an

application

for

a

certificate

of

need

within

the

7

time

required

by

this

section

shall

constitute

denial

of

and

8

final

administrative

action

on

the

application.

9

Sec.

30.

Section

10A.720,

Code

2025,

is

amended

to

read

as

10

follows:

11

10A.720

Appeal

of

certificate

of

need

decisions.

12

The

council’s

department’s

decision

on

an

application

for

13

certificate

of

need,

when

announced

pursuant

to

section

10A.719

14

135.68

,

is

shall

be

a

final

decision.

Any

dissatisfied

party

15

who

is

an

affected

person

with

respect

to

the

application,

16

and

who

participated

or

sought

unsuccessfully

to

participate

17

in

the

formal

review

procedure

prescribed

by

section

10A.716

18

135.65

,

may

request

a

rehearing

in

accordance

with

chapter

17A

19

and

rules

of

the

department.

If

a

rehearing

is

not

requested

20

or

an

affected

party

remains

dissatisfied

after

the

request

for

21

rehearing,

an

appeal

may

be

taken

in

the

manner

provided

by

22

chapter

17A

.

Notwithstanding

the

Iowa

administrative

procedure

23

Act,

chapter

17A

,

a

request

for

rehearing

is

not

required

,

24

prior

to

appeal

under

section

17A.19

.

25

Sec.

31.

Section

10A.721,

Code

2025,

is

amended

to

read

as

26

follows:

27

10A.721

Period

for

which

certificate

is

valid

——

extension

28

or

revocation.

29

1.

A

certificate

of

need

shall

be

valid

for

a

maximum

of

30

one

year

from

the

date

of

issuance.

Upon

the

expiration

of

the

31

certificate,

or

at

any

earlier

time

while

the

certificate

is

32

valid

,

the

holder

thereof

of

the

certificate

shall

provide

the

33

department

such

information

on

the

development

of

the

project

34

covered

by

the

certificate

as

the

department

may

request.

35

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The

council

department

shall

determine

at

the

end

of

the

1

certification

period

whether

sufficient

progress

is

being

made

2

on

the

development

of

the

project.

The

certificate

of

need

may

3

be

extended

by

the

council

department

for

additional

periods

4

of

time

as

are

reasonably

necessary

to

expeditiously

complete

5

the

project,

but

may

be

revoked

by

the

council

department

at

6

the

end

of

the

first

or

any

subsequent

certification

period

for

7

insufficient

progress

in

developing

the

project.

8

2.

Upon

expiration

of

a

certificate

of

need,

and

prior

to

9

extension

thereof

of

the

certificate

of

need

,

any

affected

10

person

shall

have

the

right

to

submit

to

the

department

11

information

which

may

be

relevant

to

the

question

of

granting

12

an

extension.

The

department

may

call

a

public

hearing

for

13

this

purpose.

14

Sec.

32.

Section

10A.722,

unnumbered

paragraph

1,

Code

15

2025,

is

amended

to

read

as

follows:

16

The

department

shall

adopt

,

with

approval

of

the

council,

17

such

administrative

rules

as

are

necessary

to

enable

it

to

18

implement

this

part

subchapter

.

These

rules

shall

include:

19

Sec.

33.

Section

10A.723,

subsection

2,

paragraph

a,

Code

20

2025,

is

amended

to

read

as

follows:

21

a.

A

class

I

violation

is

one

in

which

a

party

offers

a

22

new

institutional

health

service

or

changed

institutional

23

health

service

modernization

or

acquisition

without

review

and

24

approval

by

the

council

department

.

A

party

in

violation

is

25

subject

to

a

penalty

of

three

hundred

dollars

for

each

day

of

a

26

class

I

violation.

The

department

may

seek

injunctive

relief

27

which

shall

include

restraining

the

commission

or

continuance

28

of

an

act

which

would

violate

the

provisions

of

this

paragraph.

29

Notice

and

opportunity

to

be

heard

shall

be

provided

to

a

party

30

pursuant

to

rule

of

civil

procedure

1.1507

and

contested

case

31

procedures

in

accordance

with

chapter

17A

.

The

department

may

32

reduce,

alter,

or

waive

a

penalty

upon

the

party

showing

good

33

faith

compliance

with

the

department’s

request

to

immediately

34

cease

and

desist

from

conduct

in

violation

of

this

section

.

35

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Sec.

34.

Section

68B.35,

subsection

2,

paragraph

e,

Code

1

2025,

is

amended

to

read

as

follows:

2

e.

Members

of

the

state

banking

council,

the

Iowa

ethics

and

3

campaign

disclosure

board,

the

credit

union

review

board,

the

4

economic

development

authority,

the

employment

appeal

board,

5

the

environmental

protection

commission,

the

health

facilities

6

council,

the

Iowa

finance

authority,

the

Iowa

public

employees’

7

retirement

system

investment

board,

the

Iowa

lottery

commission

8

created

in

section

99G.8

,

the

natural

resource

commission,

the

9

board

of

parole,

the

state

racing

and

gaming

commission,

the

10

state

board

of

regents,

the

transportation

commission,

the

11

office

of

consumer

advocate,

the

utilities

commission,

the

Iowa

12

telecommunications

and

technology

commission,

and

any

full-time

13

members

of

other

boards

and

commissions

as

defined

under

14

section

7E.4

who

receive

an

annual

salary

for

their

service

15

on

the

board

or

commission.

The

Iowa

ethics

and

campaign

16

disclosure

board

shall

conduct

an

annual

review

to

determine

17

if

members

of

any

other

board,

commission,

or

authority

should

18

file

a

statement

and

shall

require

the

filing

of

a

statement

19

pursuant

to

rules

adopted

pursuant

to

chapter

17A

.

20

Sec.

35.

Section

97B.1A,

subsection

8,

paragraph

a,

21

subparagraph

(8),

Code

2025,

is

amended

to

read

as

follows:

22

(8)

Members

of

the

state

transportation

commission

,

and

the

23

board

of

parole

,

and

the

state

health

facilities

council

.

24

Sec.

36.

CODE

EDITOR

DIRECTIVE.

25

1.

The

Code

editor

is

directed

to

make

the

following

26

transfers:

27

a.

Section

10A.711

to

section

135.61.

28

b.

Section

10A.713

to

section

135.62.

29

c.

Section

10A.714

to

section

135.63.

30

d.

Section

10A.715

to

section

135.64.

31

e.

Section

10A.716

to

section

135.65.

32

f.

Section

10A.717

to

section

135.66.

33

g.

Section

10A.718

to

section

135.67.

34

h.

Section

10A.719

to

section

135.68.

35

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i.

Section

10A.720

to

section

135.69.

1

j.

Section

10A.721

to

section

135.70.

2

k.

Section

10A.722

to

section

135.71.

3

l.

Section

10A.723

to

section

135.72.

4

m.

Section

10A.724

to

section

135.73.

5

n.

Section

10A.725

to

section

135.74.

6

o.

Section

10A.726

to

section

135.75.

7

p.

Section

10A.727

to

section

135.76.

8

q.

Section

10A.728

to

section

135.77.

9

r.

Section

10A.729

to

section

135.78.

10

2.

The

Code

editor

is

directed

to

rename

and

retitle

11

subchapter

VI

of

chapter

135

as

HEALTH

FACILITIES

and

include

12

sections

135.61

through

135.78.

13

3.

The

Code

editor

shall

correct

internal

references

in

the

14

Code

and

in

any

enacted

legislation

as

is

necessary

due

to

the

15

enactment

of

this

division.

16

Sec.

37.

REPEAL.

Section

10A.712,

Code

2025,

is

repealed.

17

DIVISION

VIII

18

CONFORMING

CHANGES

——

ELIMINATION

OF

THE

HEALTH

FACILITIES

19

COUNCIL

20

Sec.

38.

Section

10A.711,

unnumbered

paragraph

1,

Code

21

2025,

is

amended

to

read

as

follows:

22

As

used

in

this

part

subchapter

,

unless

the

context

23

otherwise

requires:

24

Sec.

39.

Section

10A.711,

subsection

1,

paragraph

d,

Code

25

2025,

is

amended

to

read

as

follows:

26

d.

Each

institutional

health

facility

or

health

maintenance

27

organization

which,

prior

to

receipt

of

the

application

by

the

28

department,

has

formally

indicated

to

the

department

pursuant

29

to

this

part

subchapter

an

intent

to

furnish

in

the

future

30

institutional

health

services

similar

to

the

new

institutional

31

health

service

proposed

in

the

application.

32

Sec.

40.

Section

10A.713,

subsection

1,

Code

2025,

is

33

amended

to

read

as

follows:

34

1.

A

new

institutional

health

service

or

changed

35

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institutional

health

service

shall

not

be

offered

or

developed

1

in

this

state

without

prior

application

to

the

department

2

for

and

receipt

of

a

certificate

of

need,

pursuant

to

this

3

part

subchapter

.

The

application

shall

be

made

upon

forms

4

furnished

or

prescribed

by

the

department

and

shall

contain

5

such

information

as

the

department

may

require

under

this

part

6

subchapter

.

The

application

shall

be

accompanied

by

a

fee

7

equivalent

to

three-tenths

of

one

percent

of

the

anticipated

8

cost

of

the

project

with

a

minimum

fee

of

six

hundred

dollars

9

and

a

maximum

fee

of

twenty-one

thousand

dollars.

The

fee

10

shall

be

remitted

by

the

department

to

the

treasurer

of

11

state,

who

shall

place

it

in

the

general

fund

of

the

state.

12

If

an

application

is

voluntarily

withdrawn

within

thirty

13

calendar

days

after

submission,

seventy-five

percent

of

the

14

application

fee

shall

be

refunded;

if

the

application

is

15

voluntarily

withdrawn

more

than

thirty

but

within

sixty

days

16

after

submission,

fifty

percent

of

the

application

fee

shall

17

be

refunded;

if

the

application

is

withdrawn

voluntarily

more

18

than

sixty

days

after

submission,

twenty-five

percent

of

19

the

application

fee

shall

be

refunded.

Notwithstanding

the

20

required

payment

of

an

application

fee

under

this

subsection

,

21

an

applicant

for

a

new

institutional

health

service

or

a

22

changed

institutional

health

service

offered

or

developed

by

23

an

intermediate

care

facility

for

persons

with

an

intellectual

24

disability

or

an

intermediate

care

facility

for

persons

with

25

mental

illness

as

defined

pursuant

to

section

135C.1

is

exempt

26

from

payment

of

the

application

fee.

27

Sec.

41.

Section

10A.713,

subsection

2,

unnumbered

28

paragraph

1,

Code

2025,

is

amended

to

read

as

follows:

29

This

part

subchapter

shall

not

be

construed

to

augment,

30

limit,

contravene,

or

repeal

in

any

manner

any

other

statute

31

of

this

state

which

may

authorize

or

relate

to

licensure,

32

regulation,

supervision,

or

control

of,

nor

to

be

applicable

33

to:

34

Sec.

42.

Section

10A.713,

subsection

2,

paragraphs

a,

f,

h,

35

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754

j,

k,

m,

and

n,

Code

2025,

are

amended

to

read

as

follows:

1

a.

Private

offices

and

private

clinics

of

an

individual

2

physician,

dentist,

or

other

practitioner

or

group

of

health

3

care

providers,

except

as

provided

by

section

10A.711

135.61

,

4

subsection

17

,

paragraphs

“g”

,

“h”

,

and

“m”

,

and

section

10A.711

5

135.61

,

subsections

2

and

19

.

6

f.

A

residential

care

facility,

as

defined

in

section

7

135C.1

,

including

a

residential

care

facility

for

persons

with

8

an

intellectual

disability,

notwithstanding

any

provision

in

9

this

part

subchapter

to

the

contrary.

10

h.

(1)

The

deletion

of

one

or

more

health

services,

11

previously

offered

on

a

regular

basis

by

an

institutional

12

health

facility

or

health

maintenance

organization,

13

notwithstanding

any

provision

of

this

part

subchapter

to

the

14

contrary,

if

all

of

the

following

conditions

exist:

15

(a)

The

institutional

health

facility

or

health

maintenance

16

organization

reports

to

the

department

the

deletion

of

the

17

service

or

services

at

least

thirty

days

before

the

deletion

on

18

a

form

prescribed

by

the

department.

19

(b)

The

institutional

health

facility

or

health

maintenance

20

organization

reports

the

deletion

of

the

service

or

services

on

21

its

next

annual

report

to

the

department.

22

(2)

If

these

conditions

are

not

met,

the

institutional

23

health

facility

or

health

maintenance

organization

is

subject

24

to

review

as

a

“new

institutional

health

service”

or

“changed

25

institutional

health

service”

under

section

10A.711

135.61

,

26

subsection

17

,

paragraph

“f”

,

and

is

subject

to

sanctions

under

27

section

10A.723

135.72

.

28

(3)

If

the

institutional

health

facility

or

health

29

maintenance

organization

reestablishes

the

deleted

service

30

or

services

at

a

later

time,

review

as

a

“new

institutional

31

health

service”

or

“changed

institutional

health

service”

may

32

be

required

pursuant

to

section

10A.711

135.61

,

subsection

17

.

33

j.

The

construction,

modification,

or

replacement

of

34

nonpatient

care

services,

including

parking

facilities,

35

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heating,

ventilation

and

air

conditioning

systems,

computers,

1

telephone

systems,

medical

office

buildings,

and

other

projects

2

of

a

similar

nature,

notwithstanding

any

provision

in

this

part

3

subchapter

to

the

contrary.

4

k.

(1)

The

redistribution

of

beds

by

a

hospital

within

5

the

acute

care

category

of

bed

usage,

notwithstanding

any

6

provision

in

this

part

subchapter

to

the

contrary,

if

all

of

7

the

following

conditions

exist:

8

(a)

The

hospital

reports

to

the

department

the

number

and

9

type

of

beds

to

be

redistributed

on

a

form

prescribed

by

the

10

department

at

least

thirty

days

before

the

redistribution.

11

(b)

The

hospital

reports

the

new

distribution

of

beds

on

its

12

next

annual

report

to

the

department.

13

(2)

If

these

conditions

are

not

met,

the

redistribution

14

of

beds

by

the

hospital

is

subject

to

review

as

a

new

15

institutional

health

service

or

changed

institutional

health

16

service

pursuant

to

section

10A.711

135.61

,

subsection

17

,

17

paragraph

“d”

,

and

is

subject

to

sanctions

under

section

10A.723

18

135.72

.

19

m.

Hemodialysis

services

provided

by

a

hospital

or

20

freestanding

facility,

notwithstanding

any

provision

in

this

21

part

subchapter

to

the

contrary.

22

n.

Hospice

services

provided

by

a

hospital,

notwithstanding

23

any

provision

in

this

part

subchapter

to

the

contrary.

24

Sec.

43.

Section

10A.713,

subsection

2,

paragraph

e,

25

subparagraph

(2),

Code

2025,

is

amended

to

read

as

follows:

26

(2)

Acquires

major

medical

equipment

as

provided

by

section

27

10A.711

135.61

,

subsection

17

,

paragraphs

“i”

and

“j”

.

28

Sec.

44.

Section

10A.713,

subsection

2,

paragraph

g,

29

subparagraph

(1),

unnumbered

paragraph

1,

Code

2025,

is

amended

30

to

read

as

follows:

31

A

reduction

in

bed

capacity

of

an

institutional

health

32

facility,

notwithstanding

any

provision

in

this

part

subchapter

33

to

the

contrary,

if

all

of

the

following

conditions

exist:

34

Sec.

45.

Section

10A.713,

subsection

2,

paragraph

g,

35

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subparagraph

(2),

Code

2025,

is

amended

to

read

as

follows:

1

(2)

If

these

conditions

are

not

met,

the

institutional

2

health

facility

is

subject

to

review

as

a

“new

institutional

3

health

service”

or

“changed

institutional

health

service”

under

4

section

10A.711

135.61

,

subsection

17

,

paragraph

“d”

,

and

is

5

subject

to

sanctions

under

section

10A.723

135.72

.

If

the

6

institutional

health

facility

reestablishes

the

deleted

beds

at

7

a

later

time,

review

as

a

“new

institutional

health

service”

or

8

“changed

institutional

health

service”

is

required

pursuant

to

9

section

10A.711

135.61

,

subsection

17

,

paragraph

“d”

.

10

Sec.

46.

Section

10A.713,

subsection

2,

paragraph

l,

11

unnumbered

paragraph

1,

Code

2025,

is

amended

to

read

as

12

follows:

13

The

replacement

or

modernization

of

any

institutional

14

health

facility

if

the

replacement

or

modernization

does

15

not

add

new

health

services

or

additional

bed

capacity

for

16

existing

health

services,

notwithstanding

any

provision

in

this

17

part

subchapter

to

the

contrary.

With

respect

to

a

nursing

18

facility,

“replacement”

means

establishing

a

new

facility

within

19

the

same

county

as

the

prior

facility

to

be

closed.

With

20

reference

to

a

hospital,

“replacement”

means

establishing

a

new

21

hospital

that

demonstrates

compliance

with

all

of

the

following

22

criteria

through

evidence

submitted

to

the

department:

23

Sec.

47.

Section

10A.713,

subsection

2,

paragraph

p,

24

unnumbered

paragraph

1,

Code

2025,

is

amended

to

read

as

25

follows:

26

The

conversion

of

an

existing

number

of

beds

by

an

27

intermediate

care

facility

for

persons

with

an

intellectual

28

disability

to

a

smaller

facility

environment,

including

but

not

29

limited

to

a

community-based

environment

which

does

not

result

30

in

an

increased

number

of

beds,

notwithstanding

any

provision

31

in

this

part

subchapter

to

the

contrary,

including

subsection

32

4

,

if

all

of

the

following

conditions

exist:

33

Sec.

48.

Section

10A.713,

subsection

3,

Code

2025,

is

34

amended

to

read

as

follows:

35

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3.

This

part

subchapter

shall

not

be

construed

to

be

1

applicable

to

a

health

care

facility

operated

by

and

for

the

2

exclusive

use

of

members

of

a

religious

order,

which

does

3

not

admit

more

than

two

individuals

to

the

facility

from

the

4

general

public,

and

which

was

in

operation

prior

to

July

1,

5

1986.

However,

this

part

subchapter

is

applicable

to

such

6

a

facility

if

the

facility

is

involved

in

the

offering

or

7

developing

of

a

new

or

changed

institutional

health

service

on

8

or

after

July

1,

1986.

9

Sec.

49.

Section

10A.714,

subsection

3,

Code

2025,

is

10

amended

to

read

as

follows:

11

3.

In

the

evaluation

of

applications

for

certificates

12

of

need

submitted

by

the

university

of

Iowa

hospitals

and

13

clinics,

the

unique

features

of

that

institution

relating

to

14

statewide

tertiary

health

care,

health

science

education,

and

15

clinical

research

shall

be

given

due

consideration.

Further,

16

in

administering

this

part

subchapter

,

the

unique

capacity

of

17

university

hospitals

for

the

evaluation

of

technologically

18

innovative

equipment

and

other

new

health

services

shall

be

19

utilized.

20

Sec.

50.

Section

10A.715,

subsection

2,

Code

2025,

is

21

amended

to

read

as

follows:

22

2.

Upon

request

of

the

sponsor

of

the

proposed

new

or

23

changed

service,

the

department

shall

make

a

preliminary

review

24

of

the

letter

for

the

purpose

of

informing

the

sponsor

of

25

the

project

of

any

factors

which

may

appear

likely

to

result

26

in

denial

of

a

certificate

of

need,

based

on

the

criteria

27

for

evaluation

of

applications

in

section

10A.714

135.63

.

28

A

comment

by

the

department

under

this

section

shall

not

29

constitute

a

final

decision.

30

Sec.

51.

Section

10A.716,

subsection

1,

Code

2025,

is

31

amended

to

read

as

follows:

32

1.

Within

fifteen

business

days

after

receipt

of

an

33

application

for

a

certificate

of

need,

the

department

shall

34

examine

the

application

for

form

and

completeness

and

accept

or

35

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reject

it.

An

application

shall

be

rejected

only

if

it

fails

1

to

provide

all

information

required

by

the

department

pursuant

2

to

section

10A.713

135.62

,

subsection

1

.

The

department

shall

3

promptly

return

to

the

applicant

any

rejected

application,

with

4

an

explanation

of

the

reasons

for

its

rejection.

5

Sec.

52.

Section

10A.717,

subsection

1,

unnumbered

6

paragraph

1,

Code

2025,

is

amended

to

read

as

follows:

7

The

department

may

waive

the

letter

of

intent

procedures

8

prescribed

by

section

10A.715

135.64

and

substitute

a

summary

9

review

procedure,

which

shall

be

established

by

rules

of

the

10

department,

when

it

accepts

an

application

for

a

certificate

11

of

need

for

a

project

which

meets

any

of

the

criteria

in

12

paragraphs

“a”

through

“e”

:

13

Sec.

53.

Section

10A.722,

subsections

2,

3,

and

4,

Code

14

2025,

are

amended

to

read

as

follows:

15

2.

Uniform

procedures

for

variations

in

application

of

16

criteria

specified

by

section

10A.714

135.63

for

use

in

formal

17

review

of

applications

for

certificates

of

need,

when

such

18

variations

are

appropriate

to

the

purpose

of

a

particular

19

review

or

to

the

type

of

institutional

health

service

proposed

20

in

the

application

being

reviewed.

21

3.

Uniform

procedures

for

summary

reviews

conducted

under

22

section

10A.717

135.66

.

23

4.

Criteria

for

determining

when

it

is

not

feasible

to

24

complete

formal

review

of

an

application

for

a

certificate

25

of

need

within

the

time

limits

specified

in

section

10A.719

26

135.68

.

The

rules

adopted

under

this

subsection

shall

include

27

criteria

for

determining

whether

an

application

proposes

28

introduction

of

technologically

innovative

equipment,

and

if

29

so,

procedures

to

be

followed

in

reviewing

the

application.

30

However,

a

rule

adopted

under

this

subsection

shall

not

permit

31

a

deferral

of

more

than

sixty

days

beyond

the

time

when

a

32

decision

is

required

under

section

10A.719

135.68

,

unless

both

33

the

applicant

and

the

department

agree

to

a

longer

deferment.

34

Sec.

54.

Section

10A.723,

subsections

1

and

3,

Code

2025,

35

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are

amended

to

read

as

follows:

1

1.

Any

party

constructing

a

new

institutional

health

2

facility

or

an

addition

to

or

renovation

of

an

existing

3

institutional

health

facility

without

first

obtaining

a

4

certificate

of

need

or,

in

the

case

of

a

mobile

health

5

service,

ascertaining

that

the

mobile

health

service

has

6

received

certificate

of

need

approval,

as

required

by

this

part

7

subchapter

,

shall

be

denied

licensure

or

change

of

licensure

by

8

the

appropriate

responsible

licensing

agency

of

this

state.

9

3.

Notwithstanding

any

other

sanction

imposed

pursuant

10

to

this

section

,

a

party

offering

or

developing

any

new

11

institutional

health

service

or

changed

institutional

health

12

service

without

first

obtaining

a

certificate

of

need

as

13

required

by

this

part

subchapter,

may

be

temporarily

or

14

permanently

restrained

from

doing

so

by

any

court

of

competent

15

jurisdiction

in

any

action

brought

by

the

state,

any

of

its

16

political

subdivisions,

or

any

other

interested

person.

17

Sec.

55.

Section

10A.723,

subsection

2,

unnumbered

18

paragraph

1,

Code

2025,

is

amended

to

read

as

follows:

19

A

party

violating

this

part

subchapter

shall

be

subject

20

to

penalties

in

accordance

with

this

section

.

The

21

department

shall

adopt

rules

setting

forth

the

violations

by

22

classification,

the

criteria

for

the

classification

of

any

23

violation

not

listed,

and

procedures

for

implementing

this

24

subsection

.

25

Sec.

56.

Section

10A.724,

subsection

3,

Code

2025,

is

26

amended

to

read

as

follows:

27

3.

The

department

shall,

where

appropriate,

provide

28

for

modification,

consistent

with

the

purposes

of

this

part

29

subchapter

,

of

reporting

requirements

to

correctly

reflect

the

30

differences

among

hospitals

and

among

health

care

facilities

31

referred

to

in

subsection

2

,

and

to

avoid

otherwise

unduly

32

burdensome

costs

in

meeting

the

requirements

of

uniform

methods

33

of

financial

reporting.

34

Sec.

57.

Section

10A.725,

subsection

2,

Code

2025,

is

35

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amended

to

read

as

follows:

1

2.

Where

more

than

one

licensed

hospital

or

health

2

care

facility

is

operated

by

the

reporting

organization,

3

the

information

required

by

this

section

shall

be

reported

4

separately

for

each

licensed

hospital

or

health

care

facility.

5

The

department

shall

require

preparation

of

specified

financial

6

reports

by

a

certified

public

accountant,

and

may

require

7

attestation

of

responsible

officials

of

the

reporting

hospital

8

or

health

care

facility

that

the

reports

submitted

are

to

the

9

best

of

their

knowledge

and

belief

prepared

in

accordance

with

10

the

prescribed

methods

of

reporting.

The

department

shall

11

have

the

right

to

inspect

the

books,

audits

and

records

of

any

12

hospital

or

health

care

facility

as

reasonably

necessary

to

13

verify

reports

submitted

pursuant

to

this

part

subchapter

.

14

Sec.

58.

Section

10A.726,

subsection

1,

Code

2025,

is

15

amended

to

read

as

follows:

16

1.

The

department

shall

from

time

to

time

undertake

analyses

17

and

studies

relating

to

hospital

and

health

care

facility

18

costs

and

to

the

financial

status

of

hospitals

or

health

care

19

facilities,

or

both,

which

are

subject

to

the

provisions

of

20

this

part

subchapter

.

It

shall

further

require

the

filing

21

of

information

concerning

the

total

financial

needs

of

each

22

individual

hospital

or

health

care

facility

and

the

resources

23

currently

or

prospectively

available

to

meet

these

needs,

24

including

the

effect

of

proposals

made

by

health

systems

25

agencies.

The

department

shall

also

prepare

and

file

such

26

summaries

and

compilations

or

other

supplementary

reports

based

27

on

the

information

filed

with

it

as

will,

in

its

judgment,

28

advance

the

purposes

of

this

part

subchapter

.

29

Sec.

59.

Section

10A.727,

Code

2025,

is

amended

to

read

as

30

follows:

31

10A.727

Data

to

be

compiled.

32

The

department

shall

compile

all

relevant

financial

and

33

utilization

data

in

order

to

have

available

the

statistical

34

information

necessary

to

properly

monitor

hospital

and

health

35

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care

facility

charges

and

costs.

Such

data

shall

include

1

necessary

operating

expenses,

appropriate

expenses

incurred

for

2

rendering

services

to

patients

who

cannot

or

do

not

pay,

all

3

properly

incurred

interest

charges,

and

reasonable

depreciation

4

expenses

based

on

the

expected

useful

life

of

the

property

5

and

equipment

involved.

The

department

shall

also

obtain

6

from

each

hospital

and

health

care

facility

a

current

rate

7

schedule

as

well

as

any

subsequent

amendments

or

modifications

8

of

that

schedule

as

it

may

require.

In

collection

of

the

data

9

required

by

this

section

and

sections

10A.724

135.73

through

10

10A.726

135.75

,

the

department

and

other

state

agencies

shall

11

coordinate

their

reporting

requirements.

12

Sec.

60.

Section

10A.728,

Code

2025,

is

amended

to

read

as

13

follows:

14

10A.728

Civil

penalty.

15

Any

hospital

or

health

care

facility

which

fails

to

file

16

with

the

department

the

financial

reports

required

by

sections

17

10A.724

135.73

through

10A.727

135.76

is

subject

to

a

civil

18

penalty

of

not

to

exceed

five

hundred

dollars

for

each

offense.

19

Sec.

61.

Section

10A.729,

Code

2025,

is

amended

to

read

as

20

follows:

21

10A.729

Contracts

for

assistance

with

analyses,

studies,

and

22

data.

23

In

furtherance

of

the

department’s

responsibilities

under

24

sections

10A.726

135.75

and

10A.727

135.76

,

the

director

may

25

contract

with

the

Iowa

hospital

association

and

third-party

26

payers,

the

Iowa

health

care

facilities

association

and

27

third-party

payers,

or

leading

age

Iowa

and

third-party

28

payers

for

the

establishment

of

pilot

programs

dealing

with

29

prospective

rate

review

in

hospitals

or

health

care

facilities,

30

or

both.

Such

contract

shall

be

subject

to

the

approval

of

31

the

executive

council

and

shall

provide

for

an

equitable

32

representation

of

health

care

providers,

third-party

payers,

33

and

health

care

consumers

in

the

determination

of

criteria

34

for

rate

review.

No

third-party

payer

shall

be

excluded

from

35

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positive

financial

incentives

based

upon

volume

of

gross

1

patient

revenues.

No

state

or

federal

funds

appropriated

or

2

available

to

the

department

shall

be

used

for

any

such

pilot

3

program.

4

Sec.

62.

Section

135.131,

subsection

1,

paragraph

a,

Code

5

2025,

is

amended

to

read

as

follows:

6

a.

“Birth

center”

means

birth

center

as

defined

in

section

7

10A.711

135.61

.

8

Sec.

63.

Section

135B.5A,

Code

2025,

is

amended

to

read

as

9

follows:

10

135B.5A

Conversion

relative

to

certain

hospitals.

11

1.

A

conversion

of

a

long-term

acute

care

hospital,

12

rehabilitation

hospital,

or

psychiatric

hospital

as

defined

by

13

federal

regulations

to

a

general

hospital

or

to

a

specialty

14

hospital

of

a

different

type

is

a

permanent

change

in

bed

15

capacity

and

shall

require

a

certificate

of

need

pursuant

to

16

section

10A.713

135.62

.

17

2.

A

conversion

of

a

critical

access

hospital

or

general

18

hospital

to

a

rural

emergency

hospital

shall

not

require

a

19

certificate

of

need

pursuant

to

section

10A.713

135.62

.

20

3.

Any

change

of

a

rural

emergency

hospital

in

licensure,

21

organizational

structure,

or

type

of

institutional

health

22

facility

shall

require

a

certificate

of

need

pursuant

to

23

section

10A.713

135.62

.

24

Sec.

64.

Section

135C.2,

subsection

5,

unnumbered

paragraph

25

1,

Code

2025,

is

amended

to

read

as

follows:

26

The

department

shall

establish

a

special

classification

27

within

the

residential

care

facility

category

in

order

to

28

foster

the

development

of

residential

care

facilities

which

29

serve

persons

with

an

intellectual

disability,

chronic

mental

30

illness,

a

developmental

disability,

or

brain

injury,

as

31

described

under

section

225C.26

,

and

which

contain

five

or

32

fewer

residents.

A

facility

within

the

special

classification

33

established

pursuant

to

this

subsection

is

exempt

from

the

34

requirements

of

section

10A.713

135.62

.

The

department

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shall

adopt

rules

which

are

consistent

with

rules

previously

1

developed

for

the

waiver

demonstration

project

pursuant

to

2

1986

Iowa

Acts,

ch.

1246,

§206

,

and

which

include

all

of

the

3

following

provisions:

4

Sec.

65.

Section

135P.1,

subsection

3,

Code

2025,

is

amended

5

to

read

as

follows:

6

3.

“Health

facility”

means

an

institutional

health

facility

7

as

defined

in

section

10A.711

135.61

,

a

hospice

licensed

under

8

chapter

135J

,

a

home

health

agency

as

defined

in

section

9

144D.1

,

an

assisted

living

program

certified

under

chapter

10

231C

,

a

clinic,

a

community

health

center,

or

the

university

11

of

Iowa

hospitals

and

clinics,

and

includes

any

corporation,

12

professional

corporation,

partnership,

limited

liability

13

company,

limited

liability

partnership,

or

other

entity

14

comprised

of

such

health

facilities.

15

Sec.

66.

Section

231C.3,

subsection

2,

Code

2025,

is

amended

16

to

read

as

follows:

17

2.

Each

assisted

living

program

operating

in

this

state

18

shall

be

certified

by

the

department.

If

an

assisted

living

19

program

is

voluntarily

accredited

by

a

recognized

accrediting

20

entity,

the

department

shall

certify

the

assisted

living

21

program

on

the

basis

of

the

voluntary

accreditation.

An

22

assisted

living

program

that

is

certified

by

the

department

on

23

the

basis

of

voluntary

accreditation

shall

not

be

subject

to

24

payment

of

the

certification

fee

prescribed

in

section

231C.18

,

25

but

shall

be

subject

to

an

administrative

fee

as

prescribed

by

26

rule.

An

assisted

living

program

certified

under

this

section

27

is

exempt

from

the

requirements

of

section

10A.713

135.62

28

relating

to

certificate

of

need

requirements.

29

Sec.

67.

Section

505.27,

subsection

5,

paragraph

a,

Code

30

2025,

is

amended

to

read

as

follows:

31

a.

“Health

care

provider”

means

the

same

as

defined

in

32

section

10A.711

135.61

,

a

hospital

licensed

pursuant

to

chapter

33

135B

,

or

a

health

care

facility

licensed

pursuant

to

chapter

34

135C

.

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Sec.

68.

Section

708.3A,

subsection

5,

paragraph

d,

Code

1

2025,

is

amended

to

read

as

follows:

2

d.

“Health

care

provider”

means

an

emergency

medical

care

3

provider

as

defined

in

chapter

147A

or

a

person

licensed

4

or

registered

under

chapter

148

,

148C

,

148D

,

or

152

who

is

5

providing

or

who

is

attempting

to

provide

emergency

medical

6

services,

as

defined

in

section

147A.1

,

or

who

is

providing

7

or

who

is

attempting

to

provide

health

services

as

defined

in

8

section

10A.711

135.61

in

a

hospital.

A

person

who

commits

an

9

assault

under

this

section

against

a

health

care

provider

in

10

a

hospital,

or

at

the

scene

or

during

out-of-hospital

patient

11

transportation

in

an

ambulance,

is

presumed

to

know

that

the

12

person

against

whom

the

assault

is

committed

is

a

health

care

13

provider.

14

DIVISION

IX

15

IOWA

HEALTH

INFORMATION

NETWORK

——

EXCHANGE

ADVISORY

COMMITTEE

16

CREATED

AND

BOARD

OF

DIRECTORS

ELIMINATED

17

Sec.

69.

Section

135D.2,

subsection

1,

Code

2025,

is

amended

18

by

striking

the

subsection.

19

Sec.

70.

Section

135D.2,

subsection

4,

Code

2025,

is

amended

20

to

read

as

follows:

21

4.

“Designated

entity”

means

the

nonprofit

corporation

22

designated

selected

by

the

department

through

a

competitive

23

process

as

the

entity

responsible

for

administering

and

24

governing

the

Iowa

health

information

network.

25

Sec.

71.

Section

135D.2,

Code

2025,

is

amended

by

adding

the

26

following

new

subsections:

27

NEW

SUBSECTION

.

4A.

“Director”

means

the

director

of

health

28

and

human

services.

29

NEW

SUBSECTION

.

5A.

“Exchange

advisory

committee”

or

30

“advisory

committee”

means

the

exchange

advisory

committee

31

appointed

by

the

director

pursuant

to

section

135D.6.

32

Sec.

72.

Section

135D.4,

subsection

2,

paragraph

a,

Code

33

2025,

is

amended

to

read

as

follows:

34

a.

The

network,

through

the

designated

entity

complying

with

35

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chapter

490,

496C,

and

504

and

reporting

as

required

under

this

1

chapter

,

operates

in

an

entrepreneurial

and

businesslike

manner

2

in

which

it

is

accountable

to

all

participants

utilizing

the

3

network’s

products

and

services.

4

Sec.

73.

Section

135D.5,

subsection

1,

Code

2025,

is

amended

5

to

read

as

follows:

6

1.

The

Iowa

health

information

network

shall

be

7

administered

and

governed

by

a

designated

entity

selected

by

8

the

department

through

a

competitive

process.

The

designated

9

entity

shall

be

established

as

a

nonprofit

corporation

10

organized

under

chapter

490,

496C,

or

504.

Unless

otherwise

11

provided

in

this

chapter,

the

corporation

is

subject

to

the

12

provisions

of

chapter

504.

The

designated

entity

shall

be

13

established

for

the

purpose

of

administering

and

governing

the

14

statewide

Iowa

health

information

network.

Notwithstanding

any

15

provision

of

law

to

the

contrary,

the

department

shall

conduct

16

a

competitive

process

to

select

a

designated

entity

at

least

17

every

eight

years.

18

Sec.

74.

Section

135D.5,

subsection

3,

paragraph

d,

Code

19

2025,

is

amended

to

read

as

follows:

20

d.

The

employment

of

personnel

necessary

for

the

efficient

21

performance

of

the

duties

assigned

to

the

designated

entity.

22

All

such

personnel

shall

be

considered

employees

of

a

private

,

23

nonprofit

corporation

and

shall

be

exempt

from

the

personnel

24

requirements

imposed

on

state

agencies,

departments,

and

25

administrative

units.

26

Sec.

75.

Section

135D.6,

Code

2025,

is

amended

by

striking

27

the

section

and

inserting

in

lieu

thereof

the

following:

28

135D.6

Exchange

advisory

committee.

29

1.

The

director

shall

appoint

an

exchange

advisory

30

committee.

31

2.

The

advisory

committee

shall

include

at

least

one

32

member

who

is

a

consumer

of

health

services,

and

a

majority

33

of

the

advisory

committee

members

shall

be

representative

of

34

participants

in

the

Iowa

health

information

network.

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3.

The

exchange

advisory

committee

shall

do

all

of

the

1

following:

2

a.

Advise

the

department

regarding

the

needs

of

participants

3

and

nonparticipants

relating

to

the

exchange

of

health

4

information.

5

b.

Ensure

the

department

develops,

and

the

designated

6

entity

complies

with,

the

standards,

requirements,

policies,

7

and

procedures

for

access

to,

use,

secondary

use,

privacy,

8

and

security

of

health

information

exchanged

through

the

Iowa

9

health

information

network,

consistent

with

applicable

federal

10

and

state

standards

and

laws.

11

c.

Direct

a

public

and

private

collaborative

effort

to

12

promote

the

adoption

and

use

of

health

information

technology

13

in

the

state

to

improve

health

care

quality,

increase

patient

14

safety,

reduce

health

care

costs,

enhance

public

health,

15

and

empower

individuals

and

health

care

professionals

with

16

comprehensive,

real-time

medical

information

to

provide

17

continuity

of

care

and

make

the

best

health

care

decisions.

18

d.

Educate

the

public

and

the

health

care

sector

about

19

the

value

of

health

information

technology

in

improving

20

patient

care,

and

methods

to

promote

increased

support

and

21

collaboration

of

state

and

local

public

health

agencies,

22

health

care

professionals,

and

consumers

in

health

information

23

technology

initiatives.

24

e.

Work

to

align

interstate

and

intrastate

interoperability

25

standards

in

accordance

with

national

health

information

26

exchange

standards.

27

f.

Provide

an

annual

budget

and

fiscal

report

for

the

Iowa

28

health

information

network

to

the

governor,

the

department

29

of

health

and

human

services,

the

department

of

management,

30

and

the

general

assembly.

The

report

shall

also

include

31

information

about

the

services

provided

through

the

network

and

32

information

on

the

participant

usage

of

the

network.

33

Sec.

76.

Section

135D.7,

subsection

1,

unnumbered

paragraph

34

1,

Code

2025,

is

amended

to

read

as

follows:

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The

board

designated

entity

shall

implement

1

industry-accepted

security

standards,

policies,

and

procedures

2

to

protect

the

transmission

and

receipt

of

protected

health

3

information

exchanged

through

the

Iowa

health

information

4

network,

which

shall,

at

a

minimum,

comply

with

HIPAA

and

shall

5

include

all

of

the

following:

6

Sec.

77.

Section

135D.7,

subsection

1,

paragraph

c,

7

subparagraph

(2),

Code

2025,

is

amended

to

read

as

follows:

8

(2)

The

board

designated

entity

shall

provide

the

means

9

and

process

by

which

a

patient

may

decline

participation.

10

The

means

and

process

utilized

shall

minimize

the

burden

on

11

patients

and

health

care

professionals.

12

Sec.

78.

Section

135D.7,

subsection

3,

Code

2025,

is

amended

13

to

read

as

follows:

14

3.

A

participant

exchanging

health

information

and

data

15

through

the

Iowa

health

information

network

shall

grant

to

16

other

participants

of

the

network

a

nonexclusive

license

to

17

retrieve

and

use

that

information

in

accordance

with

applicable

18

state

and

federal

laws,

and

the

policies

and

standards

19

established

by

the

board

department

.

20

Sec.

79.

Section

135D.7,

subsection

6,

paragraph

b,

Code

21

2025,

is

amended

to

read

as

follows:

22

b.

Any

health

information

in

the

possession

of

the

23

board

designated

entity

due

to

its

the

designated

entity’s

24

administration

of

the

Iowa

health

information

network.

25

EXPLANATION

26

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

27

the

explanation’s

substance

by

the

members

of

the

general

assembly.

28

This

bill

relates

to

health

care

including

a

funding

model

29

for

Iowa’s

rural

health

system;

health

care-related

award,

30

grant,

residency,

and

fellowship

programs;

establishment

of

31

a

health

care

incentive

program;

Medicaid

graduate

medical

32

education;

the

health

facilities

council;

and

the

Iowa

health

33

information

network.

34

DIVISION

I.

This

division

requires

the

department

of

health

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and

human

services

(HHS)

to

submit

to

the

centers

for

Medicare

1

and

Medicaid

services

of

the

United

States

department

of

health

2

and

human

services

a

request

for

approval

for

a

health

care

3

hub-and-spoke

partnership

funding

model

for

the

purpose

of

4

improving

Iowa’s

rural

health

system.

The

division

shall

take

5

effect

upon

enactment.

6

DIVISION

II.

This

division

eliminates

PRIMECARRE

and

makes

7

conforming

changes.

The

bill

requires

HHS

to

coordinate

with

8

the

college

student

aid

commission

(commission)

to

administer

9

the

health

professional

incentive

program.

PRIMECARRE

includes

10

the

health

care

workforce

and

community

support

grant

program

11

and

the

primary

care

provider

loan

repayment

program

to

recruit

12

and

retain

primary

care

providers

in

rural

communities.

13

Current

law

requires

HHS

to

encourage

local

boards

to

14

adopt

a

plan

including

that

health

facilities

may

seek

15

technical

assistance

or

apply

for

matching

grants

for

the

plan

16

development.

The

bill

removes

the

instruction

for

health

17

facilities

to

apply

for

matching

grants

for

plan

development.

18

HHS

is

required

to

make

loan

repayments

pursuant

to

a

loan

19

repayment

program

contract

including

a

United

States

department

20

of

health

and

human

services

state

loan

repayment

program

21

contract

executed

on

or

before

December

31,

2025,

under

the

22

primary

care

provider

loan

repayment

program,

if

a

recipient

23

is

in

compliance

with

the

loan

repayment

program

contract.

24

HHS

shall

create

an

account

for

the

deposit

of

encumbered

or

25

obligated

moneys

relating

to

the

primary

care

provider

loan

26

repayment

program.

27

The

division

takes

effect

upon

enactment.

28

DIVISION

III.

This

division

eliminates

certain

health

29

care-related

programs.

30

The

rural

Iowa

primary

care

loan

repayment

program

(Code

31

section

256.221)

is

eliminated.

The

program

provides

loan

32

repayment

for

medical

students

who

agree

to

practice

as

33

physicians

in

certain

service

areas.

34

The

health

care

professional

recruitment

program

(Code

35

-35-

LSB

1555HV

(3)

91

lh/ko

35/

40

H.F.

754

section

256.223)

is

also

eliminated.

The

program

provides

loan

1

repayment

for

students

who

graduate

from

a

certain

institution

2

and

become

licensed

as

a

health

care

professional.

3

In

addition,

the

health

care

award

program

(Code

section

4

256.224)

is

eliminated.

The

program

provides

financial

awards

5

to

registered

nurses,

advanced

registered

nurse

practitioners,

6

physician

assistants,

and

nurse

educators

who

practice

in

7

certain

areas

or

teach

in

this

state.

8

Finally,

the

mental

health

professional

loan

repayment

9

program

(Code

section

256.225)

is

eliminated.

The

program

10

provides

loan

repayment

for

mental

health

professionals

who

11

agree

to

practice

in

certain

practice

areas.

12

For

all

of

the

eliminated

programs,

the

commission

is

13

required

to

make

loan

repayments

and

provide

annual

awards

14

pursuant

to

program

agreements

and

contracts

entered

into

15

on

or

before

June

30,

2025,

as

detailed

in

the

bill.

All

16

unencumbered

and

unobligated

moneys

in

the

eliminated

programs’

17

funds

shall

be

transferred

to

the

health

care

professional

18

incentive

program

fund

(program

fund)

created

in

division

IV.

19

The

commission

shall

create

accounts

for

the

deposit

of

20

encumbered

and

obligated

moneys

for

each

eliminated

program

as

21

detailed

in

the

division.

Upon

the

expiration

of

all

program

22

agreement,

contract,

and

award

disbursement

periods,

any

23

unencumbered

and

unobligated

moneys

in

the

accounts

shall

be

24

deposited

in

the

program

fund

created

in

division

IV.

25

DIVISION

IV.

This

division

establishes

a

health

care

26

professional

incentive

program

(incentive

program)

to

recruit

27

and

retain

eligible

health

care

professionals

(professionals)

28

in

eligible

health

care

professions

(profession)

in

certain

29

areas

of

the

state

by

offering

an

award

of

a

loan

repayment

30

or

an

income

bonus.

The

commission,

in

coordination

with

31

HHS,

shall

administer

the

incentive

program

as

detailed

in

32

the

division.

A

professional

is

ineligible

for

the

incentive

33

program

if

the

professional

is

currently

participating

in

or

34

has

participated

in

certain

health

care-related

award

programs

35

-36-

LSB

1555HV

(3)

91

lh/ko

36/

40

H.F.

754

as

identified

in

divisions

II

and

III.

The

incentive

program

1

award

shall

be

distributed

annually

by

the

commission

as

2

detailed

in

the

division.

At

least

every

five

years,

the

3

commission,

in

consultation

with

HHS,

shall

establish

a

list

4

of

professions

and

the

aggregate

award

amounts,

not

to

exceed

5

$200,000,

for

each

profession.

6

A

program

fund

is

created

and

moneys

in

the

program

fund

are

7

appropriated

to

the

commission

to

be

used

for

the

incentive

8

program.

The

moneys

deposited

in

the

program

fund

shall

not

9

revert

and

shall

remain

in

the

program

fund

at

the

end

of

the

10

fiscal

year.

The

commission

may

use

the

interest

and

earnings

11

on

the

moneys

in

the

fund

for

administrative

costs.

All

moneys

12

received

by

HHS

or

the

commission

from

the

health

care-related

13

programs

eliminated

in

divisions

II

and

III

shall

be

deposited

14

into

the

program

fund.

The

commission,

in

coordination

with

15

HHS,

shall

adopt

rules

to

administer

the

incentive

program.

16

The

division

shall

take

effect

upon

enactment.

17

DIVISION

V.

This

division

eliminates

certain

health

18

care-related

grant,

residency,

and

fellowship

programs.

19

Current

law

provides

that

the

fulfilling

Iowa’s

need

for

20

dentists

matching

grant

program

may

receive

moneys

through

the

21

health

care

workforce

shortage

fund

or

the

fulfilling

Iowa’s

22

need

for

dentists

matching

grant

program

account

(Code

section

23

135.175).

The

division

eliminates

the

fund

and

the

account.

24

The

health

care

workforce

support

initiative

(Code

section

25

135.175)

is

eliminated.

The

initiative

provides

for

the

26

coordination

and

support

of

various

efforts

to

address

the

27

health

care

workforce

shortage

in

the

state.

28

Additionally,

the

medical

residency

training

state

matching

29

grants

program

(Code

section

135.176)

is

eliminated.

The

30

program

provides

matching

state

funding

to

sponsors

of

31

accredited

graduate

medical

education

residency

programs

in

32

the

state

to

establish,

expand,

or

support

medical

residency

33

training

programs.

34

The

nurse

residency

state

matching

grants

program

(Code

35

-37-

LSB

1555HV

(3)

91

lh/ko

37/

40

H.F.

754

section

135.178)

is

also

eliminated.

The

program

provides

1

matching

state

funding

to

sponsors

of

nurse

residency

programs

2

in

the

state

to

establish,

expand,

or

support

nurse

residency

3

programs.

4

Moreover,

the

state-funded

family

medicine

obstetrics

5

fellowship

program

(Code

section

135.193)

is

eliminated.

The

6

program

provides

funding

for

fellowships

to

increase

access

7

to

family

medicine

obstetrics

practitioners

in

rural

and

8

underserved

areas

of

the

state.

9

For

all

of

the

programs

eliminated

in

the

division,

HHS

is

10

required

to

provide

matching

state

funding

and

fund

residency

11

and

fellowship

positions

awarded

on

or

before

June

30,

2025,

as

12

detailed

in

the

bill.

All

unencumbered

and

unobligated

moneys

13

related

to

the

programs

eliminated

in

the

division

shall

be

14

transferred

to

HHS

to

fund

Medicaid

graduate

medical

education

15

efforts.

16

HHS

shall

create

accounts

for

the

deposit

of

encumbered

and

17

obligated

moneys

for

each

eliminated

program

as

detailed

in

the

18

division.

Upon

the

expiration

of

all

grant,

residency,

and

19

fellowship

periods,

any

unencumbered

and

unobligated

moneys

in

20

the

account

shall

be

appropriated

to

HHS

for

Medicaid

graduate

21

medical

education

efforts.

22

DIVISION

VI.

This

division

eliminates

the

state-funded

23

psychiatry

residency

and

fellowship

positions

(positions)

24

(Code

section

135.180)

administered

by

the

university

of

25

Iowa

hospitals

and

clinics

(U

of

I).

The

positions

provide

26

financial

support

for

up

to

seven

residents

and

up

to

two

27

fellows

annually.

The

board

of

regents

(regents)

shall

direct

28

the

U

of

I

to

distribute

moneys

for

positions

approved

and

29

awarded

on

or

before

June

30,

2025,

until

all

residents

and

30

fellows

have

completed

or

left

the

positions.

The

regents

must

31

also

direct

the

U

of

I

to

create

an

account

for

the

deposit

32

of

moneys

encumbered

and

obligated

relating

to

the

positions.

33

Upon

the

expiration

of

all

residency

and

fellowship

periods,

34

any

unencumbered

and

unobligated

moneys

in

the

account

shall

35

-38-

LSB

1555HV

(3)

91

lh/ko

38/

40

H.F.

754

be

appropriated

to

HHS

for

Medicaid

graduate

medical

education

1

efforts.

Any

unobligated

or

unencumbered

moneys

in

the

2

psychiatry

residency

and

fellowship

positions

fund

are

also

3

appropriated

to

HHS

to

fund

Medicaid

graduate

medical

education

4

efforts.

5

DIVISION

VII.

This

division

eliminates

the

health

6

facilities

council,

and

transfers

the

council’s

duties

to

HHS.

7

DIVISION

VIII.

This

division

makes

conforming

changes

8

to

the

Code

related

to

the

elimination

of

health

facilities

9

council

and

the

transfer

of

the

applicable

Code

sections.

10

DIVISION

IX.

This

division

eliminates

the

board

of

11

directors

(board)

that

governs

and

administers

the

Iowa

12

health

information

network

(network)

and

transfers

the

board’s

13

administrative

duties

to

the

designated

entity.

Current

law

14

requires

the

designated

entity

to

be

a

nonprofit

corporation.

15

The

bill

eliminates

the

requirement

that

the

corporation

be

16

nonprofit.

The

division

creates

an

exchange

advisory

committee

17

(committee),

appointed

by

the

director

of

HHS,

to

govern

the

18

network

and

the

designated

entity.

The

division

requires

19

HHS

to

conduct

a

competitive

process

every

eight

years

to

20

select

a

designated

entity.

Current

law

prohibits

a

single

21

industry

from

being

disproportionately

represented

as

voting

22

members

of

the

board,

and

requires

the

director

of

HHS

and

the

23

director

of

the

Medicaid

program

or

the

directors’

designees

24

to

act

as

voting

members.

The

commissioner

of

insurance

is

25

required

to

serve

on

the

board

as

a

nonvoting

member,

and

26

individuals

serving

in

a

nonvoting

capacity

on

the

board

are

27

not

included

in

the

total

number

of

authorized

members

on

28

the

board.

The

division

strikes

these

member

requirements.

29

Current

law

requires

the

board

to

ensure

the

designated

entity

30

enters

into

contracts

with

each

state

agency

necessary

for

31

state

reporting

requirements,

and

to

develop,

implement,

and

32

enforce

a

single

patient

identifier

or

alternative

mechanism

to

33

share

secure

patient

information

that

is

utilized

by

all

health

34

care

professionals.

The

division

eliminates

these

duties

for

35

-39-

LSB

1555HV

(3)

91

lh/ko

39/

40

H.F.

754

the

committee.

The

division

requires

the

committee

to

advise

1

HHS

regarding

the

needs

relating

to

the

exchange

of

health

2

information,

and

to

ensure

HHS

develops,

and

the

designated

3

entity

complies

with,

the

standards,

requirements,

policies,

4

and

procedures

related

to

the

network.

5

-40-

LSB

1555HV

(3)

91

lh/ko

40/

40