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H. B. No. 71 *HR31/R644* ~ OFFICIAL ~ G1/2
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To: Public Health and Human
Services; Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Hines
HOUSE BILL NO. 71
AN ACT TO ESTABLISH THE MISSISSIPPI HOSPITAL RECOVERY TRUST 1
PROGRAM IN THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO PROVIDE 2
GRANTS TO PUBLIC HOSPITALS AT HIGH FINANCIAL RISK TO HELP THOSE 3
HOSPITALS BE MORE FINANCIALLY VIABLE SO THAT THEY CAN CONTINUE TO 4
OPERATE AND BE AVAILABLE TO PROVIDE HEALTH CARE SERVICES TO THE 5
COMMUNITIES IN WHICH THEY ARE LOCATED; TO CREATE A SPECIAL FUND TO 6
BE KNOWN AS THE MISSISSIPPI HOSPITAL RECOVERY TRUST FUND, WHICH 7
SHALL BE ADMINISTERED BY THE DEPARTMENT AND EXPENDED FOR THE SOLE 8
PURPOSE OF PROVIDING GRANTS TO PUBLIC HOSPITALS UNDER THE 9
PROVISIONS OF THIS ACT; TO PROVIDE THAT TO BE ELIGIBLE FOR A 10
GRANT, A PUBLIC HOSPITAL MUST APPLY FOR THE GRANT AND INCLUDE SUCH 11
DOCUMENTATION AS SPECIFIED BY THE DEPARTMENT SHOWING THAT THE 12
HOSPITAL IS AT HIGH FINANCIAL RISK; TO PROVIDE THAT THE AMOUNT OF 13
EACH GRANT SHALL BE DETERMINED BY THE DEPARTMENT, WITH PRIORITY 14
FOR LARGER GRANTS BEING GIVEN TO PUBLIC HOSPITALS THAT ARE AT 15
IMMEDIATE RISK OF CLOSING AND WHOSE SURVIVAL IS CRITICALLY 16
ESSENTIAL TO THE COMMUNITIES IN WHICH THEY ARE LOCATED; TO PROVIDE 17
THAT WITHIN FIVE BUSINESS DAYS AFTER RECEIPT OF AN APPLICATION 18
WITH THE REQUIRED DOCUMENTATION SHOWING THAT THE PUBLIC HOSPITAL 19
IS AT HIGH FINANCIAL RISK, THE DEPARTMENT SHALL APPROVE THE 20
APPLICATION AND DISTRIBUTE THE GRANT TO THE HOSPITAL; TO REQUIRE 21
THE DEPARTMENT TO MAKE ANNUAL REPORTS TO THE JOINT LEGISLATIVE 22
BUDGET COMMITTEE ABOUT EACH GRANT MADE UNDER THIS ACT; AND FOR 23
RELATED PURPOSES. 24
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 25
SECTION 1. (1) As used in this section, the following terms 26
shall have the meanings as defined in this subsection: 27
(a) "Department" means the Department of Finance and 28
Administration. 29
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(b) "High financial risk" means financial strain and 30
being on the verge of closure as a result of any combination of 31
the following conditions: poor profits, high amount of debt, high 32
percentage of uninsured patients, large amount of uncompensated 33
care, small amount of capital, low cash reserves, difficulty in 34
paying staff and loss of essential services. 35
(c) "Public hospital" means a licensed hospital that is 36
wholly or jointly owned by the State of Mississippi or a political 37
subdivision of the state. 38
(2) The Mississippi Hospital Recovery Trust Program is 39
created in the Department of Finance and Administration to provide 40
grants to public hospitals at high financial risk to help those 41
hospitals be more financially viable so that they can continue to 42
operate and be available to provide health care services to the 43
communities in which they are located. 44
(3) There is created in the State Treasury a special fund to 45
be known as the Mississippi Hospital Recovery Trust Fund, which 46
shall be administered by the department. The fund shall consist 47
of legislative appropriations, federal funds, contributions, 48
donations, gifts and monies from any other source that are made 49
available for deposit into the fund. Monies in the fund shall be 50
expended by the department upon appropriation of the Legislature 51
for the sole purpose of providing grants to public hospitals under 52
the provisions of this section. Monies remaining in the fund at 53
the end of a fiscal year shall not lapse into the State General 54
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Fund, and any interest earned from the investment of monies in the 55
fund shall be deposited to the credit of the fund. 56
(4) The department shall provide instructions on the 57
department's website detailing the information and materials that 58
must be submitted by a public hospital seeking a grant, and the 59
department shall provide the terms and conditions of each grant, 60
which shall be subject to the following provisions: 61
(a) To be eligible for a grant, a public hospital must 62
apply for the grant and include with the application such 63
documentation as specified by the department showing that the 64
hospital is at high financial risk; 65
(b) The amount of each grant shall be determined by the 66
department, with priority for larger grants being given to public 67
hospitals that are at immediate risk of closing and whose survival 68
is critically essential to the communities in which they are 69
located; and 70
(c) Within five (5) business days after receipt of an 71
application with the required documentation showing that the 72
public hospital is at high financial risk, the department shall 73
approve the application and distribute the grant to the hospital. 74
(5) The department shall monitor the performance of each 75
public hospital that receives a grant under this section, and not 76
later than October 1, 2026, and each October 1 thereafter, the 77
department shall report to the Joint Legislative Budget Committee 78
about each grant made, including: 79
H. B. No. 71 *HR31/R644* ~ OFFICIAL ~
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ST: Mississippi Hospital Recovery Trust
Program; create to provide grants to public
hospitals at high financial risk.
(a) The name and location of the public hospital; 80
(b) The amount of the grant; and 81
(c) How the hospital has used the grant. 82
SECTION 2. This act shall take effect and be in force from 83
and after its passage. 84