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HB817 • 2026

State/Local Hospitalization Program; repealing provisions relating to Program.

An Act to amend and reenact §§ 8.01-66.9 and 54.1-2404 of the Code of Virginia and to repeal Chapter 12 (§§ 32.1-343 through 32.1-350) of Title 32.1 of the Code of Virginia, relating to State/Local Hospitalization Program; repeal.

Healthcare
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Downey
Last action
2026-04-06
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

The official source material does not provide information on what will replace the State/Local Hospitalization Program, nor how hospitals and healthcare providers will be affected by its removal.

Repealing State/Local Hospitalization Program

This act removes a program that assisted indigent individuals with hospital expenses.

What This Bill Does

  • Removes the State/Local Hospitalization Program, which provided assistance to indigent persons for certain inpatient and outpatient hospital expenses.
  • Changes two sections of Virginia's laws (8.01-66.9 and 54.1-2404) by removing references to the State/Local Hospitalization Program.
  • Eliminates Chapter 12 from Title 32.1 of Virginia’s Code, which contained rules about the State/Local Hospitalization Program.

Who It Names or Affects

  • People who used to rely on the State/Local Hospitalization Program for help with hospital costs.
  • Hospitals and healthcare providers that previously worked with the program.

Terms To Know

Indigent
A person who is very poor and cannot afford basic necessities like medical care.

Limits and Unknowns

  • The bill does not specify what will happen to people who previously received help from the State/Local Hospitalization Program.
  • It is unclear how hospitals and healthcare providers will be affected by the removal of this program in terms of funding or patient care.

Bill History

  1. 2026-04-06 Governor

    Approved by Governor-Chapter 225 (effective 7/1/2026)

  2. 2026-04-06 Governor

    Approved by Governor-Chapter 225 (effective 7/1/2026)

  3. 2026-04-06 Governor

    Acts of Assembly Chapter text (CHAP0225)

  4. 2026-03-14 House

    Enrolled Bill communicated to Governor on March 14, 2026

  5. 2026-03-14 Governor

    Governor's Action Deadline 11:59 p.m., April 13, 2026

  6. 2026-03-10 House

    Signed by Speaker

  7. 2026-03-10 Senate

    Signed by President

  8. 2026-03-10 House

    Enrolled

  9. 2026-03-10 House

    Bill text as passed House and Senate (HB817ER)

  10. 2026-03-10 House

    Fiscal Impact Statement from Department of Planning and Budget (HB817)

  11. 2026-03-03 House

    Senate substitute agreed to by House (98-Y 0-N 0-A)

  12. 2026-02-27 Senate

    Read third time

  13. 2026-02-27 Senate

    Engrossed by Senate - committee substitute

  14. 2026-02-27 Education and Health

    Committee substitute agreed to (Voice Vote)

  15. 2026-02-27 Senate

    Passed Senate with substitute Block Vote (37-Y 0-N 0-A)

  16. 2026-02-26 Senate

    Rules suspended

  17. 2026-02-26 Senate

    Passed by for the day

  18. 2026-02-26 Senate

    Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

  19. 2026-02-26 Senate

    Passed by for the day Block Vote (Voice Vote)

  20. 2026-02-25 Finance and Appropriations

    Reported from Finance and Appropriations (15-Y 0-N)

  21. 2026-02-23 Education and Health

    Fiscal Impact Statement from Department of Planning and Budget (HB817)

  22. 2026-02-20 Education and Health

    Committee substitute printed 26108274D-S1

  23. 2026-02-19 Education and Health

    Reported from Education and Health with substitute and rereferred to Finance and Appropriations (15-Y 0-N)

  24. 2026-02-19 Senate

    Senate committee offered

  25. 2026-01-29 Senate

    Constitutional reading dispensed (on 1st reading)

  26. 2026-01-29 Education and Health

    Referred to Committee on Education and Health

  27. 2026-01-28 House

    Read third time and passed House (97-Y 0-N 0-A)

  28. 2026-01-27 House

    Read second time and engrossed

  29. 2026-01-26 House

    Read first time

  30. 2026-01-22 Health and Human Services

    Reported from Health and Human Services (21-Y 1-N)

  31. 2026-01-15 House

    Fiscal Impact Statement from Department of Planning and Budget (HB817)

  32. 2026-01-13 House

    Prefiled and ordered printed; Offered 01-14-2026 26104061D

  33. 2026-01-13 Health and Human Services

    Referred to Committee on Health and Human Services

Official Summary Text

State/Local Hospitalization Program; repeal.
Eliminates the State/Local Hospitalization Program. Under current law, with such funds as may be appropriated by the General Assembly, the State/Local Hospitalization Program is established to assist indigent persons with certain inpatient and outpatient hospital expenses. This bill is identical to SB 736.

Current Bill Text

Read the full stored bill text
An Act to amend and reenact §§
8.01-66.9
and
54.1-2404
of the Code of Virginia and to repeal Chapter 12 (§§
32.1-343
through
32.1-350
) of Title 32.1 of the Code of Virginia, relating to State/Local Hospitalization Program; repeal.
Be it enacted by the General Assembly of Virginia:
1. That §§
8.01-66.9
and
54.1-2404
of the Code of Virginia are amended and reenacted as follows:
§
8.01-66.9
. Lien in favor of Commonwealth, its programs, institutions, or departments on claim for personal injuries.
Whenever any person sustains personal injuries and receives treatment in any hospital, public or private, or nursing home, or receives medical attention or treatment from any physician, or receives nursing services or care from any registered nurse in this Commonwealth, or receives pharmaceutical goods or any type of medical or rehabilitative device, apparatus, or treatment which is paid for pursuant to the Virginia Medical Assistance Program,
the State/Local Hospitalization Program and other
programs of the Department of Medical Assistance Services, the Maternal and Child Health Program, or the Children's Specialty Services Program, or provided at or paid for by any hospital or rehabilitation center operated by the Commonwealth, the Department for Aging and Rehabilitative Services or any public institution of higher education, the Commonwealth shall have a lien for the total amount paid pursuant to such program, and the Commonwealth or such Department or institution shall have a lien for the total amount due for the services, equipment or devices provided at or paid for by such hospital or center operated by the Commonwealth or such Department or institution, or any portion thereof compromised pursuant to the authority granted under §
2.2-514
, on the claim of such injured person or of his personal representative against the person, firm, or corporation who is alleged to have caused such injuries.
The Commonwealth or such Department or institution shall also have a lien on the claim of the injured person or his personal representative for any funds which may be due him from insurance moneys received for such medical services under the injured party's own insurance coverage or through an uninsured or underinsured motorist insurance coverage endorsement. The lien granted to the Commonwealth for the total amounts paid pursuant to the Virginia Medical Assistance Program,
the State/Local Hospitalization Program and other
programs of the Department of Medical Assistance Services, the Maternal and Child Health Program, or the Children's Specialty Services Program shall have priority over the lien for the amounts due for services, equipment or devices provided at a hospital or center operated by the Commonwealth. The Commonwealth's or such Department's or institution's lien shall be inferior to any lien for payment of reasonable attorney's fees and costs, but shall be superior to all other liens created by the provisions of this chapter and otherwise. Expenses for reasonable legal fees and costs shall be deducted from the total amount recovered. The amount of the lien may be compromised pursuant to §
2.2-514
.
The court in which a suit by an injured person or his personal representative has been filed against the person, firm or corporation alleged to have caused such injuries or in which such suit may properly be filed, may, upon motion or petition by the injured person, his personal representative or his attorney, and after written notice is given to all those holding liens attaching to the recovery, reduce the amount of the liens and apportion the recovery, whether by verdict or negotiated settlement, between the plaintiff, the plaintiff's attorney, and the Commonwealth or such Department or institution as the equities of the case may appear, provided that the injured person, his personal representative or attorney has made a good faith effort to negotiate a compromise pursuant to §
2.2-514
. The court shall set forth the basis for any such reduction in a written order.
§
54.1-2404
. Itemized statements required upon request.
Upon the request of any of his patients, any health care provider licensed or certified by any of the boards within the Department, except in the case of health care services as defined in Chapter 43 (§
38.2-4300
et seq.) of Title 38.2, shall provide to such patient an itemized statement of the charges for the services rendered to the requesting patient regardless of whether a bill for the services which are the subject of the request has been or will be submitted to any third party payor including medical assistance services
or the state/local hospitalization program
.
2. That Chapter 12 (§§
32.1-343
through
32.1-350
) of Title 32.1 of the Code of Virginia is repealed.