MS Hospital Emergency Grant Program; create to provide grants to hospitals having financial difficulties.

H. B. No. 124 *HR26/R171* ~ OFFICIAL ~ G1/2
26/HR26/R171
PAGE 1 (RF\KW)

To: Public Health and Human
Services; Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Johnson

HOUSE BILL NO. 124

AN ACT TO ESTABLISH THE MISSISSIPPI HOSPITAL EMERGENCY GRANT 1
PROGRAM FOR THE PURPOSE OF PROVIDING FUNDS TO HOSPITALS THAT ARE 2
HAVING FINANCIAL DIFFICULTIES TO ASSIST THE HOSPITALS IN PROVIDING 3
NEEDED DIRECT HEALTH CARE SERVICES; TO PROVIDE THAT THE PROGRAM 4
WILL BE ADMINISTERED BY THE STATE DEPARTMENT OF HEALTH; TO PROVIDE 5
THE ELIGIBILITY AND APPLICATION REQUIREMENTS FOR A HOSPITAL 6
SEEKING A GRANT UNDER THE PROGRAM; TO CREATE A SPECIAL FUND IN THE 7
STATE TREASURY TO BE KNOWN AS THE HOSPITAL EMERGENCY GRANT FUND; 8
TO REQUIRE THE DEPARTMENT TO SUBMIT AN ANNUAL REPORT ABOUT THE 9
DISTRIBUTION OF GRANT FUNDS FOR EACH GRANT AWARDED UNDER THE 10
PROGRAM; AND FOR RELATED PURPOSES. 11
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 12
SECTION 1. As used in this act, the following terms shall be 13
defined as provided in this section: 14
(a) "Department" means the State Department of Health. 15
(b) "Financial difficulties" means significant economic 16
challenges that have a reasonable potential to affect the range of 17
services offered by a hospital to individuals seeking medical care 18
or treatment and/or the quality of care and treatment provided by 19
a hospital to its patients. 20
(c) "Hospital" means a public institution that is 21
primarily engaged in providing to inpatients, by or under the 22
H. B. No. 124 *HR26/R171* ~ OFFICIAL ~
26/HR26/R171
PAGE 2 (RF\KW)

supervision of physicians, diagnostic services and therapeutic 23
services for medical diagnosis, treatment and care of injured, 24
disabled or sick persons. The term "hospital" does not include 25
licensed specialty hospitals that are recognized as such by the 26
State Department of Health, psychiatric institutions, convalescent 27
or boarding homes, children's homes, homes for the aged or other 28
like establishments where room and board only are provided, and 29
also does not include offices or clinics where patients are not 30
regularly kept as bed patients. 31
SECTION 2. (1) There is established the Mississippi 32
Hospital Emergency Grant Program to be administered by the State 33
Department of Health for the purpose of providing funds to 34
hospitals that are having financial difficulties to assist the 35
hospitals in providing needed direct health care services. 36
(2) The goal of the program is to ensure that hospitals that 37
are having financial difficulties can provide necessary health 38
care services to meet the medical needs of their local 39
populations. The funds made available under the program are 40
intended to offset the financial difficulties that may lead a 41
hospital to offer fewer services, reduce staff, delay necessary 42
upkeep and maintenance of facilities, or any similar action likely 43
to result in a patient not receiving needed medical care or 44
treatment or in a decrease in the quality of medical care or 45
treatment provided to a patient. 46
H. B. No. 124 *HR26/R171* ~ OFFICIAL ~
26/HR26/R171
PAGE 3 (RF\KW)

(3) The department shall determine the specific terms and 47
conditions of each grant awarded under the program. The 48
department shall develop instructions detailing how a hospital 49
seeking a grant under the program may apply for the grant, the 50
information and materials that must be submitted in the grant 51
application as provided in Section 4 of this act, and the specific 52
criteria for eligibility under the program as provided in Section 53
3 of this act. The application instructions shall be made 54
available on the department's website. 55
(4) The amount of each grant shall be determined by the 56
department, with priority for grants of higher amounts being given 57
to hospitals having the most financial difficulties. 58
(5) The department may expend not more than two percent (2%) 59
of the funds available for the program on the administration of 60
the program. 61
(6) Funds awarded to a hospital under the program shall be 62
used by the recipient hospital to ensure that patients receive 63
needed direct health care services, including, but not limited to, 64
by maintaining or increasing the current staff responsible for the 65
treatment and care of the hospital's patients or by maintaining or 66
upgrading the hospital's facilities where medical treatment and 67
care are administered. 68
SECTION 3. To be eligible for a grant under the program, a 69
hospital must: 70
(a) Be licensed by the department; 71
H. B. No. 124 *HR26/R171* ~ OFFICIAL ~
26/HR26/R171
PAGE 4 (RF\KW)

(b) Be located within the State of Mississippi; 72
(c) Demonstrate financial difficulties in the manner 73
provided by the department; and 74
(d) Demonstrate that the financial difficulties are 75
ongoing and have existed for a period of at least one (1) year 76
before the date of application. 77
SECTION 4. A hospital seeking a grant under the program must 78
submit an application to the department in the manner provided by 79
the department. The application must include a grant proposal 80
containing: 81
(a) The basis of the grant request; 82
(b) Information evidencing the hospital's finances, 83
such as revenue and operating expense data as shown in a current 84
financial audit; 85
(c) The amount of grant funds requested; 86
(d) A detailed description of the intended purpose of 87
the grant funds requested, which must include at least one of the 88
purposes specified in Section 2(6) of this act; 89
(e) A description of any funds available from other 90
sources for the intended purpose; and 91
(f) Any other information requested by the department. 92
SECTION 5. There is created in the State Treasury a special 93
fund to be known as the Hospital Emergency Grant Fund. The fund 94
shall consist of legislative appropriations, federal funds, 95
contributions, donations, gifts and monies from any other source 96
H. B. No. 124 *HR26/R171* ~ OFFICIAL ~
26/HR26/R171
PAGE 5 (RF\KW)

that are made available for deposit into the fund. Monies in the 97
fund shall be expended by the department, upon appropriation by 98
the Legislature, for the purpose of providing grants to hospitals 99
under the provisions of this act. Unexpended amounts remaining in 100
the fund at the end of a fiscal year shall not lapse into the 101
State General Fund, and any interest earned on amounts in the 102
special fund shall be deposited to the credit of the fund. 103
SECTION 6. (1) The department shall monitor the performance 104
of each hospital that receives a grant under this act, and not 105
later than October 1, 2026, and each October 1 thereafter, the 106
department shall submit a report that includes: 107
(a) The name and location of each grant recipient; 108
(b) The criteria used by the department to select each 109
grant recipient; 110
(c) The amount of funds awarded to each grant 111
recipient; 112
(d) How each grant recipient has spent the funds 113
awarded; and 114
(e) If a grant recipient has not fully expended the 115
funds received by the time the annual report is submitted, how the 116
grant recipient plans to spend the remaining funds. 117
(2) The department shall submit the annual report to the 118
Joint Legislative Budget Committee, the Governor, the Lieutenant 119
Governor, the Speaker of the House of Representatives, the Chair 120
H. B. No. 124 *HR26/R171* ~ OFFICIAL ~
26/HR26/R171
PAGE 6 (RF\KW)
ST: MS Hospital Emergency Grant Program; create
to provide grants to hospitals having financial
difficulties.
of the House Public Health and Human Services Committee, and the 121
Chair of the Senate Public Health and Welfare Committee. 122
SECTION 7. This act shall take effect and be in force from 123
and after its passage. 124