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Lawmakers hear bill to let district and municipal hospitals invest more of their reserves
Summary
Sen. Sandy Crawford said SB 1019 (formerly HB 2146) would raise the allowable investment cap for district and municipal hospitals from 25% to 50% of nonoperational funds and permit municipal hospitals and third-class cities to operate where hospital districts currently serve, aiming to improve returns and access in underserved rural areas; Golden Valley Memorial Healthcare offered support.
Senator Sandy Crawford presented Senate Bill 1019 to the House Committee on Health and Mental Health, describing the measure as previously passed by this committee in another form and noting near-unanimous support in the House. "Senate Bill 1019 will allow hospitals to invest up to 50% of their funds that are not required for operations and other obligations," Crawford said, explaining the current limit is 25% and the bill specifies permissible investments.
Crawford told members the change applies to district and municipal hospitals; a related authority for county hospitals was enacted two years earlier. She also said the bill would allow municipal hospitals and third-class cities to operate in areas currently served by hospital districts and county hospitals, which she said would expand access in underserved areas.
Chris Ropi, representing Golden Valley Memorial Healthcare in Clinton, said the bill is important for rural health and is "identical to what we did for county hospitals two years ago." The committee asked no follow-up questions and concluded the SB 1019 hearing with no vote recorded.
