NC H704

Establishes the Rural Health Care Stabilization Program to provide below-market interest rate loans to eligible hospitals in rural development tier one and two areas facing financial crisis due to outdated facilities and changes in healthcare delivery.

Creates the Rural Health Care Stabilization Fund as a nonreverting special fund managed by the State Treasurer, consisting of appropriated funds and loan repayments, with moneys used only for loans under the program.

Designates UNC Health Care System to administer the program, evaluate hospital stabilization plans, and submit loan recommendations to the Local Government Commission for final approval; UNC Health Care cannot apply for or benefit from loans under the program.

Limits loan interest rates to the state's most recent general obligation bond offering rate and maximum maturity to 20 years; loans may finance construction of new health care facilities or operational costs during transition periods.

Requires UNC Health Care to publish annual reports by November 1 detailing fund balances, revenue sources, total loans awarded, and disbursement status for each loan.