(The Center Square) — Mississippi Gov. Tate Reeves signed a bill into law this week that would allow community hospitals to either collaborate or consolidate with the state-owned University of Mississippi Medical Center and other rural hospitals.
Senate Bill 2323 is sponsored by Sen. Joey Fillingane, R-Sumrall, and would allow any rural hospital in the state to be acquired by the medical center. It would allow a collaborative relationship with the state’s teaching hospital and other community hospitals, and it would not be subject to state and federal anti-trust laws.
The new law would also allow rural hospitals to set up nonprofits that would work outside of the community hospital’s service area for the benefit of the hospital that could include joint hospital acquisitions, group purchasing, clinically integrated networks and joint requests for federal and state grants.
Mississippi’s hospitals are a critical part of our communities/economy. Statutes which prohibit their collaboration should be eliminated in order to improve access/quality of care. The #msleg Senate sent SB 2323 (@JoeyFillingane) to the House for consideration. #TeamDelbert pic.twitter.com/f9e3tiJwxh
— Delbert Hosemann (@DelbertHosemann) February 6, 2023
The bill was championed by Lt. Gov. Delbert Hosemann and says that “The Legislature expressly finds that the benefits of collaboration and consolidation by the community hospitals outweigh any adverse impact on competition.”
It goes into effect on July 1, the first day of the new fiscal year.
Lawmakers also passed this week a bill that would create the Mississippi Hospital Sustainability Grant Program. Senate Bill 2372 was authored by Sen. Kevin Blackwell, R-Southaven, and will distribute $103.7 million to rural hospitals with an appropriation from House Bill 271.
The bill’s conference report passed on March 28 by a 111-2 vote in the House and a unanimous vote in the Senate.
