Bill > HB271

This bill establishes the Distressed Hospital Grant Program within the Pennsylvania Department of Health to provide financial assistance to hospitals facing significant financial challenges. The program defines a "distressed hospital" as one with a negative profit margin for three consecutive years and located more than 25 miles from another hospital in the state. Hospitals can apply for grants up to 20% of the total program funding, with priority given to hospitals in medically underserved areas, rural counties, or those planning to reduce services or close. To receive a grant, hospitals must certify they will remain operational, use the funds to prevent service reduction, avoid using the money for executive compensation, and have attempted to affiliate with other healthcare providers. The Department of Health will review applications within 60 days, distribute grants in $1,000 increments, and publish annual reports detailing grant recipients and their financial impacts. The program is funded with a $100 million appropriation from the General Fund and will operate until December 31, 2029, or until all funds are disbursed. Hospitals found to make false statements in their applications may face legal consequences under Pennsylvania law.

Health and Social Services

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=271