SB574 Summary

• Creates a health care authority in Class 1 municipalities to operate and maintain nonprofit health care facilities, with authority to assume operation of county-owned general-care hospitals.

• Authority must choose one of three options within six months by two-thirds vote: construct new outpatient clinic/urgent care facility, convert hospital to 50-150 bed acute care facility, or enter management affiliation to reduce hospital size and scope.

• Authority composition includes 9 members appointed by the Governor (2), municipality mayor (1), Alabama Hospital Association (1), county commission (1), county health department (1), Birmingham Health Care Inc. (1), Mineral District Medical Society (1), and existing hospital director (1).

• Authority authorized to borrow money, issue securities, pledge revenues and property as collateral, and lease hospital parking deck; property and assets cannot be sold without city referendum approval.

• Authority must operate independently without county revenue support and provide annual audited financial statements to Jefferson County Commission and local legislative delegation within 60 days of fiscal year end.