SECTIONS 129325-129335 - California Statutes

HEALTH AND SAFETY CODE

SECTION 129325-129335

129325. It is the intent of the Legislature in enacting this
article to assist rural hospitals that play a vital role in the
health delivery system. The Legislature recognizes the difficulties
rural hospitals encounter meeting urban hospital standards while
serving a small, rural, or tourist patient base. However, it is not
the intent of the Legislature to provide assistance to facilities
that can only survive with continuous subsidies. Rather, it is the
intent of the Legislature, through this program, to encourage the
development and transition to an alternative rural hospital model,
and to provide essential access to services not available at the
alternative rural hospital level.

129330. In each even-numbered year, the office shall contract for
an actuarial study to determine the reserve sufficiency of funds in
the Health Facility Construction Loan Insurance Fund. The study shall
examine the portfolio of existing insured loans and shall estimate
the amount of reserve funds that the office should reasonably have
available to be able to respond adequately to potential foreseeable
risks, including extraordinary administrative expenses and actual
defaults. Actuarial study contracts shall be exempt from Section
10373 of the Public Contract Code and shall be considered sole-source
contracts.

129335. (a) In each odd-numbered year when the reserve balance in
the fund is projected to be in excess of that actuarially needed, the
office may, subject to authority in the Budget Act, grant excess
reserve funds to rural hospitals.
(b) Whenever the office administers the grant program, it shall do
so by a competitive process where potential grantees have sufficient
time to apply. Priority for funds shall be given to alternative
rural hospitals and rural hospitals that are sole community
providers. Priority shall also be given to applicants that are
otherwise financially viable, but request one-time financial
assistance for equipment expenditures or other capital outlays. The
maximum amount of any grant for a single project in any one grant
year shall be two hundred fifty thousand dollars ($250,000).
(c) For the purposes of this article, "rural hospital" shall have
the same meaning as contained in subdivision (a) of Section 124840.