Bill would let counties spend proceeds from private-act hospital sales beyond a health trust

Sen. Jack Johnson said he is advancing a bill to allow greater local discretion over net proceeds when a private-act public-benefit hospital is sold.

Under current law, Johnson said, proceeds after bonds and debts are paid must go into a trust dedicated to providing health care in the community. The proposed change would allow a county commission, by supermajority, to direct proceeds to other permissible uses if the amount is substantial and the local legislative body approves.

"If you sell your private act public benefit hospital, then and you make money on it, then those proceeds must all go into this trust fund," Johnson said, describing the existing law he helped pass years earlier. He said the new measure would be permissive and would not force local officials to choose other options.

Johnson said the Williamson County Commission asked for the change to gain flexibility in how larger windfalls could be used. He described the bill as "completely permissive" and not mandatory, and said he did not expect difficulty advancing it through the legislature.

Panelists noted rumors that national hospital systems had expressed interest in a Williamson County hospital, but Johnson said the legislature and he were not involved in any sale negotiations and would not comment on private discussions.

The panel did not specify a bill number at the forum or any timeline for votes; no county vote or formal local directive was reported during the event.

The bill, as described, would change the default direction of proceeds but preserve the trust option and require local supermajority approval for alternative uses.