Financially Distressed Hospitals Assistance Act - Amends the Public Health Service Act to establish a program of grants to financially distressed hospitals serving the medically indigent on an inpatient and outpatient basis. Sets forth eligibility and application criteria, including the development of a hospital services reorganization plan. Requires the Secretary of Health and Human Services to review an application within 90 days of receipt. Requires the Governor of the applicant-hospital's State to advise the Secretary whether such hospital is a necessary source of essential health services to the community in which it is located.
States that such grants may be used for payment of: (1) current indebtedness; (2) expenses related to reorganizing hospital services; and (3) retraining or severance pay for personnel adversely affected by such reorganization. Limits any single grant to a maximum of three years.
Establishes a National Advisory Council on Hospital Financing Stabilization and Reorganization to: (1) advise the Secretary; (2) review grant applications and make recommendations to the Secretary; and (3) evaluate the health services provided under health services reorganization plans. Exempts the Council from the two-year termination provisions under the Federal Advisory Committee Act.
Introduced in Senate
Referred to Senate Committee on Labor and Human Resources.
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