Establish the Rural Health Transformation Program

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 772

2025-2026

Representatives Barhorst, Moore

Cosponsors: Representatives Robb
Blasdel, Schmidt, Johnson, Newman, Fischer

To
enact sections 3701.89, 3701.891, and 3701.892 of the Revised Code
to
establish the Rural Health Transformation Program.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
sections 3701.89, 3701.891, and 3701.892 of the Revised Code be
enacted to read as follows:

Sec.
3701.89.
(A)
As used in sections 3701.89 to 3701.892 of the Revised Code:

(1)
"Freestanding birthing center" has the same meaning as in
section 3701.503 of the Revised Code.

(2)
"Health care provider" has the same meaning as in section
2105(h)(9) of the "Social Security Act," 42 U.S.C.
1397ee(h)(9).

(3)
"Qualified entity" means a hospital, health care provider,
rural health facility, government agency, or community partner that
demonstrates to the department of health its ability to administer a
component of the rural health transformation plan submitted by the
department and approved by the United States centers for medicare and
medicaid services under section 2105 of the "Social Security
Act," 42 U.S.C. 1397ee that also meets any eligibility
requirements established by the department.

(4)
"Rural health facility" has the same meaning as in section
2105(h)(3)(D) of the "Social Security Act," 42 U.S.C.
1397ee(h)(3)(D).

(5)
"Rural hospital" means a hospital located in a county that
is not classified into core based statistical areas as designated in
the inpatient prospective payment system case-mix and wage index
table published by the United States centers for medicare and
medicaid services.

(B)
The rural health transformation program is established within the
department of health. Under the program, the department shall
distribute funding and implement a rural health transformation plan
for health-related activities as authorized under section 2105(h) of
the "Social Security Act," 42 U.S.C. 1397ee(h) and in
accordance with the rural health transformation plan submitted by the
department and approved by the United States centers for medicare and
medicaid services. The department shall administer the program to the
extent that federal funds are received by the department and are
available for expenditure for the program.

(C)
In administering the rural health transformation program, the
department shall do all of the following:

(1)
Allocate and distribute program funding to a qualified entity through
a contract, grant agreement, program payment, recruitment or
retention payment, or other funding mechanism, including through a
request for funding, in the form and manner prescribed by the
department. A qualified entity shall use program funding distributed
under this section in accordance with applicable federal and state
law and the rural health transformation plan submitted by the
department and approved by the United States centers for medicare and
medicaid services. The department shall give preference to qualified
entities that utilize program funding to promote collaboration
between rural freestanding birthing centers and rural hospitals for
the provision of maternity services.

(2)
Monitor, inspect, and audit the records of a qualified entity
receiving program funding and withhold, recover, or reduce funding
for noncompliance with the federally approved rural health
transformation plan, an agreement governing the funding, or
applicable federal or state law;

(3)
Prepare and submit an annual report to members of the legislative
task force on rural health established under section 3701.892 of the
Revised Code, the president of the senate, the speaker of the house
of representatives, and the governor. The report shall include all of
the following:

(a)
The total amount of funds expended during the fiscal year;

(b)
The total amount of funds expended since the program began;

(c)
The amount of funding remaining;

(d)
The total number of qualified entities receiving program funding;

(e)
A description of the program activities completed during the fiscal
year;

(f)
Identify each qualified entity receiving funding, the amount awarded,
the purpose of the award, and the jurisdiction served.

Sec.
3701.891.
The
rural health transformation fund is created in the state treasury.
The fund shall consist of money received from the federal government
under section 2105 of the "Social Security Act," 42 U.S.C.
1397ee and shall be used by the department of health for the purpose
of implementing the rural health transformation program established
under section 3701.89 of the Revised Code. All money received by the
department for purposes of this section shall be remitted to the
state treasurer and credited to the rural health transformation fund.
Upon expiration of the program, the fund shall be closed as required
by federal law. The department shall not expend, obligate, encumber,
transfer, or otherwise disburse any money from the fund to do any of
the following:

(A)
Supplant existing state or local medicaid expenditures or required
state match;

(B)
Duplicate existing programs or services already funded by the state;

(C)
Finance the construction of new hospitals.

Sec.
3701.892.
(A)
The legislative task force on rural health is created. The task force
shall consist of twelve members: six members of the senate to be
appointed by the senate president, and six members of the house of
representatives to be appointed by the speaker of the house of
representatives. In making appointments to the task force, the senate
president and speaker of the house of representatives shall appoint
members that represent the most rural areas of the state.

(B)
Initial appointments to the task force shall be made not later than
forty-five days after the effective date of this section. Thereafter,
appointments shall be made within forty-five days after the
commencement of the first regular session of each general assembly.
Members shall serve for the remainder of the general assembly and
until a successor is appointed.

(C)
Following appointments to the task force, the members shall elect a
chairperson from among its members. Thereafter, the task force shall
meet at the call of the chairperson.

(D)
The task force shall monitor implementation of the rural health
transformation program established under section 3701.89 of the
Revised Code and the use of money from the rural health
transformation fund established under section 3701.891 of the Revised
Code.