It is the intent of the Legislature in enacting this article to encourage physicians to practice in rural areas which have insufficient numbers of physicians to provide comprehensive medical care.
Chapter 5.5State Loans and Insurance Procurement Assistance
Section § 32350
This law aims to motivate doctors to work in rural locations lacking enough healthcare providers to offer complete medical services.
rural healthcare physician incentives medical care shortage medical practice in rural areas healthcare access rural medical practice doctor shortage encouraging physicians healthcare provision healthcare disparity medical services in rural areas rural communities doctor distribution healthcare legislation physician shortages
Section § 32351
This law allows the Chowchilla Memorial Hospital District, if it collaborates with other hospital districts, to form a governmental agency to handle medical injury claims. If a hospital district has fewer than 100 beds, it can borrow money from the state to pay settlements or judgments over $300,000, provided funds have been allocated for this purpose. There is a cap of $1,000,000 in total loans available to all participating districts.
In the event the Chowchilla Memorial Hospital District enters into a joint powers agreement with a hospital district or hospital districts, whereby an independent governmental agency, as provided in Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code, is created to investigate, defend, settle and pay, if required, medical injury tort claims against any of the parties to such joint powers agreement in accordance with the authority granted by Sections 990.4 and 990.8 of the Government Code, notwithstanding any provisions of the Insurance Code to the contrary; then, in that event, each hospital district with under 100 beds shall have the right for a period of five years from the effective date of this chapter, but subject to the availability of moneys appropriated therefor, to borrow from the state for the purpose of paying any medical injury tort judgment or settlement which exceeds three hundred thousand dollars ($300,000) to the extent of such excess.
However, the total amount of funds loaned by the state to all hospital districts, which have entered into the joint powers agreement pursuant to this chapter, shall not exceed one million dollars ($1,000,000) in the aggregate.
Chowchilla Memorial Hospital District joint powers agreement independent governmental agency medical injury tort claims hospital districts borrow from the state fewer than 100 beds medical injury tort judgment loan cap settlement payments Government Code Sections 990.4 and 990.8 hospital collaboration financial assistance state loans healthcare liability
Section § 32352
This law section explains that loans given to hospital districts must be repaid to the state according to an agreed-upon schedule, which can't be longer than 40 years. The interest rate is capped at the average return on state investments over five years. The state will provide qualifying loans as long as there are funds available. Applications won't be denied for previous applications' sake, but the state can get insurance against potential loan losses, and the cost for this insurance may be up to 5% of any loan losses, charged to the agency responsible.
Loans made pursuant to this article shall be repaid to the state pursuant to a schedule mutually agreed upon by the state department and the hospital district receiving the loan, not exceeding 40 years, and at an interest rate not to exceed the five-year average of the return on the investment of state funds pursuant to Chapter 3 (commencing with Section 16430) of Part 2 of Division 4 of Title 2 of the Government Code. The state department shall grant all loans which qualify under the requirements of this chapter to the extent that funds are available therefor. No application for a loan shall be denied because previous applications have been made except that the state department may procure insurance to cover the losses, if any, in connection with such loans and the cost of such insurance may be charged to the independent agency. The cost charged to such an independent agency for the insurance shall not exceed 5 percent of the total of loan losses.
hospital district loans loan repayment schedule interest rate cap state investment return qualifying loans loan application loan insurance loan loss coverage state department agreements fund availability insurance cost limit hospital loan terms repayment terms independent agency charges
Section § 32353
This law applies specifically to the Chowchilla Memorial Hospital District and any other small hospital district with fewer than 100 beds that partners with it. These districts can hire doctors as employees, and the hospitals will cover them if they're sued for medical malpractice.
The provisions of this section shall apply only to the Chowchilla Memorial Hospital District, and to any other hospital district with a bed capacity of less than 100 beds, which has entered into a joint powers agreement with the Chowchilla Memorial Hospital District. The Chowchilla Memorial Hospital District, or other district specified in this section, shall have the authority to employ physicians in the local community and such physicians, as employees of the district shall be covered for medical injury tort liability by the district.
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Section § 32355
This law states that hospital districts with fewer than 100 beds, involved in a specific joint powers agreement, must meet certain conditions to qualify for loans. They need to submit a health quality assurance program to ensure healthcare services are reviewed properly. They should have plans for liability coverage, including handling medical claims under $300,000 and managing funds for liability reserves. Additionally, they must establish procedures for accessing legal help for medical injury claims and for repaying loans under relevant government codes.
As a condition of eligibility for loans under this chapter, any hospital district having a licensed bed capacity of less than 100 beds and which participates in a joint powers agreement described in Section 32351 shall submit the following to the state department within 60 days after the effective date of this chapter:
(a)CA Health and Safety Code § 32355(a)
A health quality assurance program which assures adequate review of health services rendered;
(b)CA Health and Safety Code § 32355(b)
Adequate procedures for providing resources for liability coverage, including provisions for the payment of all medical injury tort claims or portions of claims under three hundred thousand dollars ($300,000), and for investment of funds or resources set aside for liability reserves; and
(c)CA Health and Safety Code § 32355(c)
Adequate procedures for obtaining legal services in connection with medical injury tort claims filed against the hospital district.
(d)CA Health and Safety Code § 32355(d)
Adequate procedures to repay loans under Government Code and Health and Safety Code sections relating to district hospitals.
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Section § 32356
This law states that the rules for paying tort claims, which are legal claims for wrongful acts, against a hospital district also apply when a hospital district is repaying loans from the state.
Any provisions applicable to the payment of tort claims against a hospital district shall be applicable for the repayment of any loan from the state to a hospital district pursuant to this chapter.
hospital district tort claims loan repayment state loan hospital financing legal claims wrongful acts financial obligations healthcare district district liability state funding financial regulations debt repayment statute applicability public health financing
Section § 32357
This law requires that any duplicate reports created under a specific part of the Government Code by a particular joint powers entity or its members must be sent to the state department.
Duplicate copies of any reports prepared pursuant to Article 9 (commencing with Section 53890) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code by the joint powers entity specified in Section 32351 or any party thereto shall be submitted to the state department.
duplicate reports joint powers entity state department submission Article 9 compliance report submission requirements Government Code Section 53890 report duplication joint powers agreement public agency reporting interagency cooperation reporting obligations state agency oversight Government Code Chapter 4 public entity reports Section 32351
Section § 32358
This law requires the state department to create and adopt regulations that determine how to evaluate loan applications from district hospitals. The goal is to ensure these hospitals meet the legislative intentions outlined in another legal section.
Once a hospital district submits a loan application, the department must decide within 90 days whether it plans to recommend approval or disapproval. This preliminary decision allows the hospital to submit more information if needed to support its case. A final recommendation is due within 120 days, which helps the Legislature decide on funding the loan.
The state department shall prepare and adopt regulations establishing the specific criteria to be used for the approval of a loan application of a district hospital under this chapter to ensure that the hospital district complies with the intent of the Legislature set forth in Section 32350.
Within 120 days after submission of an application by a hospital district for a loan under the provisions of this chapter, the state department shall submit its final recommendation to the Legislature with respect to the approval or disapproval of the loan in order to assist the Legislature in determining whether to appropriate funds for the making of the loan. The state department shall notify the hospital district submitting the application of its tentative decision to recommend approval or disapproval of the loan within 90 days after receiving the application in order to allow the hospital district to present additional data as may be necessary to justify the loan.
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Section § 32359
This law allows the Department of General Services to help the Chowchilla Memorial Hospital District and other small hospital districts (with less than 100 beds) that are partnered with it to get insurance. This insurance is specifically for covering medical injury claims or settlements that go over $1 million. The department's assistance is free of charge to the state and can be requested by the hospital district in need.
The Department of General Services shall, without cost or obligation to the state, assist the Chowchilla Memorial Hospital District, and any other hospital district with a bed capacity of less than 100 beds which has entered into a joint powers agreement with the Chowchilla Memorial Hospital District, in procuring insurance for the purpose of paying medical injury tort judgments or settlements exceeding one million dollars ($1,000,000) in the aggregate. Any such procurement may, upon request of the hospital district concerned, be made by the Department of General Services on behalf of such hospital district.
Chowchilla Memorial Hospital District small hospital districts insurance procurement medical injury claims settlements over $1 million free state assistance Department of General Services joint powers agreement hospital district insurance medical tort judgments
