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Committee tweaks rural hospital tax credit to keep small hospitals eligible

Georgia House Committee (standing committee) · February 10, 2026

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Summary

The committee reported HB662 (LC461401S) out of committee after sponsors said the substitute would expand eligibility to rural emergency hospitals, lower an indigent-care threshold from 10% to 5% of net revenue for program participation, and remove a three-year standard-deviation penalty that could disqualify improving hospitals.

Representative Allstate and Anna Adams (Georgia Hospital Association) described changes to the rural hospital tax-credit program in HB662 (LC461401S). The substitute opens participation to rural emergency hospitals, adjusts eligibility thresholds — changing a 10% indigent-care threshold to 5% of annual net revenue — and removes a three-year standard-deviation formula that advocates said penalized hospitals that had improved financially or expanded services.

Witnesses told the committee the changes would restore eligibility for several rural hospitals and help sustain maternal/newborn services in facilities that have struggled financially. Members noted the general-asssembly-set $100 million for the program and that $79 million had been used the prior year; witnesses named affected hospitals including AdventHealth Murray (Chatsworth), Archibald Grady (Cedartown), Piedmont Mountainside (Jasper), Union General (Blairsville) and Irwin County Hospital.

After testimony, a motion carried by voice vote to report HB662 favorably out of committee.