1. Executive Summary
The H.B. 772 Establish the Rural Health Transformation Program bill establishes a rural health program by requiring the department of health to distribute federal funds and implement a federally approved plan under the Social Security Act.
2. What This Bill Would Do
• [Sec. 3701.89(B)] establishes the rural health transformation program within the department of health. Currently, no such program exists in statute. This provision requires the department to distribute funding and implement a federally approved rural health transformation plan.
• [Sec. 3701.89(C)(1)] requires the department to allocate and distribute funding to qualified entities. Currently, no statutory mechanism exists for this funding stream. This provision requires distribution through contracts, grants, or payments to qualified entities. Note: Implementation details are subject to agency rulemaking and require human review.
• [Sec. 3701.89(C)(2)] authorizes the department to monitor, inspect, audit, and recover funding for noncompliance. Currently, no enforcement authority exists for this program. This provision establishes oversight and compliance mechanisms tied to federal and state requirements.
• [Sec. 3701.891] creates the rural health transformation fund in the state treasury. Currently, no such fund exists. This provision requires federal funds to be deposited into the fund and prohibits use for supplanting existing Medicaid expenditures, duplicating existing programs, or financing new hospital construction.
• [Sec. 3701.892] establishes a legislative task force on rural health. Currently, no such task force exists in statute for this program. This provision requires legislative monitoring of program implementation and fund use.
3. Who is Affected
Qualified entities (hospitals, health care providers, rural health facilities, government agencies, community partners)
If passed: May receive funding through contracts, grants, or payments to administer program components.
If not passed: No access to this funding mechanism under this program.
Governing section: Sec. 3701.89(A)(3), (C)(1)
Ohio Department of Health
If passed: Required to administer the program, distribute funds, monitor compliance, and submit reports.
If not passed: No obligation to administer this program.
Governing section: Sec. 3701.89(B), (C)
Rural hospitals and freestanding birthing centers
If passed: May receive indirect benefit through funding preference for collaboration in maternity services. The bill defines a “rural hospital” as a hospital located in a county not classified within a core-based statistical area.
If not passed: No program-based funding preference exists.
Governing section: Sec. 3701.89(A)(5), (C)(1)
State Treasurer / State Treasury
If passed: Required to receive and hold federal funds in the rural health transformation fund.
If not passed: No such fund is created.
Governing section: Sec. 3701.891
Legislative Task Force Members (General Assembly)
If passed: Required to monitor program implementation and fund usage.
If not passed: No such oversight body exists.
Governing section: Sec. 3701.892
Governor, Senate President, House Speaker
If passed: Receive annual reports on program activity and expenditures.
If not passed: No reporting requirement exists.
Governing section: Sec. 3701.89(C)(3)
4. Existing Law vs. What Would Change
Current Law or Condition | What This Bill Changes |
|---|---|
No statutory rural health transformation program exists | Sec. 3701.89 establishes the program and requires implementation |
No dedicated fund for these federal rural health funds | Sec. 3701.891 creates a state treasury fund for federal funds |
No statutory mechanism for distributing these specific federal funds | Sec. 3701.89(C)(1) requires allocation to qualified entities |
No statutory legislative task force tied to this program | Sec. 3701.892 establishes a legislative oversight task force |
No restrictions specific to this funding stream | Sec. 3701.891 prohibits supplanting Medicaid expenditures, duplicating programs, and financing new hospital construction |
5. Fiscal Impact Summary
No CBO score or official fiscal note is currently available for this legislation. Fiscal impact cells are left blank pending official scoring.
6. Household Impact Matrix
Metric | If Bill Passes | If Bill Fails or Status Quo Continues |
|---|---|---|
Household Overhead | Insufficient primary source data — pending official analysis | Insufficient primary source data — continuation of current law |
Market Stability | Insufficient primary source data — pending official analysis | Insufficient primary source data — continuation of current law |
Mobility Check | Insufficient primary source data — pending official analysis | Insufficient primary source data — continuation of current law |
Local Government Impact | Insufficient primary source data — pending official analysis | Current funding levels and regulatory authority remain under existing law |
7. Provisions Requiring Review
Section 3701.89(C)(1) contains delegation to agency rulemaking.
Reason for review flag: Funding distribution methods and criteria are prescribed by the department without defined parameters.
Recommended action: Verify against Department of Health rulemaking once issued.Section 3701.89(A)(3) contains undefined eligibility criteria.
Reason for review flag: “Qualified entity” must meet eligibility requirements established by the department that are not specified in statute.
Recommended action: Verify eligibility criteria through agency guidance.Section 3701.89(B) contains conditional implementation language.
Reason for review flag: Program operation depends on receipt and availability of federal funds and federal approval of a plan.
Recommended action: Verify federal approval status and funding availability.Section 3701.891 contains federal dependency.
Reason for review flag: Fund closure and allowable uses depend on federal law requirements.
Recommended action: Verify applicable federal provisions under the Social Security Act.
8. What This Bill Does Not Do
The bill text does not contain provisions related to state-funded health program expansion. Public discussion has referenced expanded state health services in connection with rural health policy. No such provision appears in H.B. 772 as introduced.
The bill text does not contain provisions related to construction of new hospitals. Public discussion has referenced infrastructure investment. The bill prohibits use of funds for new hospital construction in Sec. 3701.891.
The bill text does not contain provisions related to changes in Medicaid eligibility. Public discussion has referenced Medicaid policy changes. No such provision appears in H.B. 772 as introduced.
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