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SB736 • 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
Hackworth
Last action
2026-04-06
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Repealing State/Local Hospitalization Program

This act removes a program that helped poor people pay for hospital expenses.

What This Bill Does

  • Removes the State/Local Hospitalization Program, which provided help to indigent individuals with hospital costs.
  • Amends sections of Virginia's Code related to liens on claims for personal injuries and itemized statements from healthcare providers.
  • Repeals Chapter 12 of Title 32.1 in the Virginia Code that outlines rules for the State/Local Hospitalization Program.

Who It Names or Affects

  • People who relied on the State/Local Hospitalization Program to pay hospital expenses.
  • Healthcare providers and hospitals that were part of or received funding from the program.

Terms To Know

Indigent
A person with very little money who cannot afford basic necessities like healthcare.
Lien
A legal claim on a property or asset to secure the payment of a debt, such as medical bills owed to the government.

Limits and Unknowns

  • The bill does not specify what will happen to people who were using the State/Local Hospitalization Program.
  • It is unclear how healthcare providers and hospitals that relied on this program for funding will be affected.

Bill History

  1. 2026-04-06 Governor

    Approved by Governor-Chapter 226 (effective 7/1/2026)

  2. 2026-04-06 Governor

    Approved by Governor-Chapter 226 (effective 7/1/2026)

  3. 2026-04-06 Governor

    Acts of Assembly Chapter text (CHAP0226)

  4. 2026-03-10 Senate

    Enrolled Bill communicated to Governor on March 10, 2026

  5. 2026-03-10 Governor

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

  6. 2026-03-04 House

    Signed by Speaker

  7. 2026-03-04 Senate

    Signed by President

  8. 2026-03-04 Senate

    Enrolled

  9. 2026-03-04 Senate

    Bill text as passed Senate and House (SB736ER)

  10. 2026-03-04 Senate

    Fiscal Impact Statement from Department of Planning and Budget (SB736)

  11. 2026-02-27 House

    Read third time

  12. 2026-02-27 House

    Passed House Block Vote (96-Y 0-N 0-A)

  13. 2026-02-26 House

    Read second time

  14. 2026-02-24 Health and Human Services

    Reported from Health and Human Services (22-Y 0-N)

  15. 2026-02-20 House

    Placed on Calendar

  16. 2026-02-20 Health and Human Services

    Referred to Committee on Health and Human Services

  17. 2026-02-20 House

    Read first time

  18. 2026-02-16 Senate

    Read second time

  19. 2026-02-16 Senate

    Engrossed by Senate - committee substitute Block Vote (Voice Vote)

  20. 2026-02-16 Senate

    Rules suspended

  21. 2026-02-16 Senate

    Rules suspended

  22. 2026-02-16 Senate

    Blank Action

  23. 2026-02-16 Finance and Appropriations

    Fiscal Impact Statement from Department of Planning and Budget (SB736)

  24. 2026-02-16 Finance and Appropriations

    Finance and Appropriations Substitute agreed to

  25. 2026-02-16 Senate

    Engrossed by Senate Block Vote (Voice Vote)

  26. 2026-02-16 Senate

    Constitutional reading dispensed Block Vote (on 3rd reading) (39-Y 0-N 0-A)

  27. 2026-02-16 Senate

    Read third time and passed Senate Block Vote (39-Y 0-N 0-A)

  28. 2026-02-13 Senate

    Rules suspended

  29. 2026-02-13 Senate

    Passed by for the day

  30. 2026-02-13 Senate

    Constitutional reading dispensed Block Vote (on 1st reading) (35-Y 0-N 0-A)

  31. 2026-02-13 Finance and Appropriations

    Committee substitute printed 26107887D-S1

  32. 2026-02-12 Finance and Appropriations

    Reported from Finance and Appropriations with substitute (13-Y 0-N)

  33. 2026-02-05 Education and Health

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

  34. 2026-02-03 Health

    Assigned Education sub: Health

  35. 2026-01-22 Senate

    Fiscal Impact Statement from Department of Planning and Budget (SB736)

  36. 2026-01-16 Senate

    Presented and ordered printed 26105176D

  37. 2026-01-16 Education and Health

    Referred to Committee on Education and Health

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 HB 817.

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.