HB450 Summary

• Creates the Rural Hospital Transformation and Stability Act and establishes the Alabama Rural Hospital Global Budget Board to implement a pilot global budget program supporting rural hospital sustainability and transformation.

• Limits initial participation to no more than 2 hospitals in the first year and 5 hospitals within the first three years; hospitals must be public or nonprofit entities located in federally-designated rural shortage areas or areas defined by the Federal Office of Rural Health Policy.

• Requires participating counties, municipalities, or communities to contribute at least 10 percent of the global payment or current tax revenues allocated to the hospital, whichever is greater, with remaining costs funded by participating insurers including Medicaid, Medicare Advantage plans, and state employee health plans.

• Mandates participating hospitals achieve population health outcomes, access and quality targets, financial targets, and other performance measures established by the board.

• Grants the board authority to establish participation criteria, set global payments with resource center assistance, adopt implementing rules, and terminate the program if determined to be ineffective or unsustainable.