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Committee hears plan for $10 million provider stabilization fund; committee asks for clearer award criteria
Summary
Members discussed a House amendment creating a $10 million provider stabilization fund; agency staff said eligibility language was agreed with the House but that the application, vetting and sustainability criteria will be developed with contracted technical assistance.
Senate members discussed language in the Budget Adjustment Act that would create a $10,000,000 provider stabilization fund to support financially at-risk health and social-service providers.
A representative of the administering agency told the committee the House and administration had agreed on eligibility language (recorded in Section 82) and that the program will be finite and competitive. "It's going to be very challenging to administer even though everyone views it as very, very necessary," the agency representative said, explaining the plan to contract blended accounting and financial-technical assistance to vet applications and review sustainability plans.
Committee members said the statute as written describes who may apply but does not specify award criteria or prioritization. Staff responded that the department will require forensic financial information and a sustainability plan as part of any application and that a technical team will help evaluate requests to ensure funds stabilize providers rather than temporarily postpone failure.
Senators expressed concern that $10 million will not meet the full need; staff acknowledged the pot could leave eligible applicants without awards and said they will evaluate applications based on financial necessity and the likelihood the award will stabilize operations. Staff also said recent federal funding developments and other system pressures may expand the universe of potential applicants.
Staff committed to developing the application, the review criteria and reporting requirements and to returning to the committee with further details. No awards or allocations were made during the hearing.
