Purchasing flexibility proposed for county hospitals

The state’s 26 county hospitals would have more flexibility in making major purchases under a bill discussed during a Health and Human Services Committee hearing Feb. 13.

LB995, introduced by Elk Creek Sen. Lavon Heidemann, would authorize county hospitals to operate in a manner similar to their peer hospitals. Heidemann said he introduced the bill to foster healthy competition.

“There is a lot of uncertainty with the federal health care mandate,” Heidemann said. “It’s necessary for county hospitals to remain competitive with their peers.”

The bill would allow county hospitals to:
• encumber hospital property;
• obtain a line of credit or borrow money;
• make improvements and additions to facilities with county board approval;
• participate in group purchasing organizations for large items; and
• open clinics in communities outside of their jurisdiction.

County board approval would be necessary for any projects costing more than 50 percent of the replacement cost of the facility. Use of general bonds to fund new projects would require a public vote.

Marty Fattig, Nemaha County Hospital CEO, testified in support of the bill, saying that local control of county hospitals is necessary to remain competitive.

“Since hospitals are owned by the county, they should be operated by the county,” Fattig said. “We need to be able to compete on an equal level with other facilities.”

No one testified in opposition to the bill and the committee took no immediate action.