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S. B. No. 2459 *SS26/R619* ~ OFFICIAL ~ G1/2
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To: Public Health and
Welfare; Appropriations
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Simmons (12th)
SENATE BILL NO. 2459
AN ACT TO ESTABLISH THE MISSISSIPPI HOSPITAL RECOVERY TRUST 1
PROGRAM IN THE DEPARTMENT OF FINANCE AND ADMINISTRATION 2
(DEPARTMENT) TO PROVIDE GRANTS TO PUBLIC HOSPITALS AT HIGH 3
FINANCIAL RISK TO HELP THOSE HOSPITALS BE MORE FINANCIALLY VIABLE 4
SO THAT THEY CAN CONTINUE TO OPERATE AND BE AVAILABLE TO PROVIDE 5
HEALTH CARE SERVICES TO THE COMMUNITIES IN WHICH THEY ARE LOCATED; 6
TO CREATE A SPECIAL FUND TO BE KNOWN AS THE MISSISSIPPI HOSPITAL 7
RECOVERY TRUST FUND, WHICH SHALL BE ADMINISTERED BY THE DEPARTMENT 8
AND EXPENDED FOR THE SOLE PURPOSE OF PROVIDING GRANTS TO PUBLIC 9
HOSPITALS UNDER THE PROVISIONS OF THIS ACT; TO PROVIDE THAT TO BE 10
ELIGIBLE FOR A GRANT, A PUBLIC HOSPITAL MUST APPLY FOR THE GRANT 11
AND INCLUDE SUCH DOCUMENTATION AS SPECIFIED BY THE DEPARTMENT 12
SHOWING THAT THE HOSPITAL IS AT HIGH FINANCIAL RISK; TO PROVIDE 13
THAT THE AMOUNT OF EACH GRANT SHALL BE DETERMINED BY THE 14
DEPARTMENT, WITH PRIORITY FOR LARGER GRANTS BEING GIVEN TO PUBLIC 15
HOSPITALS THAT ARE AT IMMEDIATE RISK OF CLOSING AND WHOSE SURVIVAL 16
IS CRITICALLY ESSENTIAL TO THE COMMUNITY IN WHICH IT IS LOCATED; 17
TO PROVIDE THAT WITHIN FIVE BUSINESS DAYS AFTER RECEIPT OF AN 18
APPLICATION WITH THE REQUIRED DOCUMENTATION SHOWING THAT THE 19
PUBLIC HOSPITAL IS AT HIGH FINANCIAL RISK, THE DEPARTMENT SHALL 20
APPROVE THE APPLICATION AND DISTRIBUTE THE GRANT TO THE HOSPITAL; 21
TO REQUIRE THE DEPARTMENT TO MAKE AN ANNUAL REPORT TO THE JOINT 22
LEGISLATIVE BUDGET COMMITTEE ABOUT EACH GRANT MADE UNDER THIS ACT; 23
TO REQUIRE THE DEPARTMENT TO ALLOCATE $150,000,000.00 FOR THE 24
MISSISSIPPI HOSPITAL RECOVERY TRUST FUND; AND FOR RELATED 25
PURPOSES. 26
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 27
SECTION 1. (1) As used in this section, the following terms 28
shall have the meanings ascribed herein: 29
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(a) "Department" means the Department of Finance and 30
Administration. 31
(b) "High financial risk" means financial strain and 32
being on the verge of closure as a result of any combination of 33
the following conditions: poor profits, high amount of debt, high 34
percentage of uninsured patients, large amount of uncompensated 35
care, small amount of capital, low cash reserves, difficulty in 36
paying staff and loss of essential services. 37
(c) "Public hospital" means a licensed hospital that is 38
wholly or jointly owned by the State of Mississippi or a political 39
subdivision of the state. 40
(2) The Mississippi Hospital Recovery Trust Program is 41
created in the department to provide grants to public hospitals at 42
high financial risk to help those hospitals be more financially 43
viable so that they can continue to operate and be available to 44
provide health care services to the communities in which they are 45
located. 46
(3) There is created in the State Treasury a special fund to 47
be known as the Mississippi Hospital Recovery Trust Fund, which 48
shall be administered by the department. The fund shall consist 49
of legislative appropriations, federal funds, contributions, 50
donations, gifts and monies from any other source that are made 51
available for deposit into the fund. Monies in the fund shall be 52
expended by the department upon appropriation of the Legislature 53
for the sole purpose of providing grants to public hospitals under 54
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the provisions of this section. Monies remaining in the fund at 55
the end of a fiscal year shall not lapse into the State General 56
Fund, and any interest earned from the investment of monies in the 57
fund shall be deposited to the credit of the fund. The department 58
shall allocate One Hundred Fifty Million Dollars ($150,000,000.00) 59
to the Mississippi Hospital Recovery Trust Fund. 60
(4) The department shall provide the terms and conditions of 61
each grant, which shall be subject to the following provisions: 62
(a) To be eligible for a grant, a public hospital must 63
apply for the grant and include with the application such 64
documentation as specified by the department showing that the 65
hospital is at high financial risk; 66
(b) The amount of each grant shall be determined by the 67
department, with priority for larger grants being given to public 68
hospitals that are at immediate risk of closing and whose survival 69
is critically essential to the community in which it is located; 70
and 71
(c) Within five (5) business days after receipt of an 72
application with the required documentation showing that the 73
public hospital is at high financial risk, the department shall 74
approve the application and distribute the grant to the hospital.75
(5) The department shall monitor the performance of each 76
public hospital that receives a grant under this section, and not 77
later than October 1, 2026, and each October 1 thereafter, the 78
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ST: Mississippi Hospital Recovery Trust
Program; create to provide grants to public
hospitals at high financial risk.
department shall report to the Joint Legislative Budget Committee 79
information about each grant made, including: 80
(a) The name and location of the public hospital; 81
(b) The amount of the grant; and 82
(c) How the hospital has used the grant. 83
SECTION 2. This act shall take effect and be in force from 84
and after July 1, 2026. 85