Committee advances substitute to expand Georgia rural hospital tax credit to freestanding ERs and labor-and-delivery sites

At a brief committee meeting, members advanced a substitute to Senate Bill 111 intended to broaden Georgia's rural hospital tax credit so more small hospitals can qualify, a presenter said.

Anna (presenter) told the committee the substitute, labeled LC492866, is a "piece of legislation that we have been working on over the last 2 years related to the rural hospital tax credit." She said the change would add rural freestanding emergency departments (the federal designation of rural emergency hospitals) and rural facilities licensed to provide labor and delivery services to the list of eligible providers. "This bill adds 7 additional rural hospitals to the program," Anna said.

The presenter also said the substitute strikes a provision (section H) that governs the calculation used to determine eligibility. Anna explained the change was intended to prevent hospitals from being excluded from the credit because federal rural health transformation funds appear on their financial statements in a way that could push them past an eligibility threshold.

Committee discussion noted program size and statutory caps. Anna said the program was at about $79,000,000 last year and that the cap is $100,000,000, leaving room for the additional facilities to participate.

The Chair noted the measure originated with Representative Angie Osteen and said it "passed out of the House unanimously"; the Chair also commented that the bill was currently awaiting action in the Senate. Vice Chair Reeves spoke in support, invoking local hospitals that benefit from the credit and highlighting maternal and newborn services as priorities the program supports. "They do good work with the money they get from this tax credit," Reeves said, adding a personal note that he was born at the predecessor to Sumpter Regional.

Procedural motions moved the measure forward. Vice Chair Reeves moved to take Senate Bill 111 off the table; the motion was seconded and carried by voice. Later, Reeves moved that the substitute "move due pass," and the motion was seconded. The committee voted by voice; members said "aye" and the committee advanced the substitute. The transcript does not include a roll-call tally.

The meeting adjourned shortly afterward; the transcript does not specify the committee's next steps or the exact scheduling for further consideration in the Senate.