County hospitals would have increased spending flexibility

County hospitals would have more authority to make large purchases under a bill advanced from general file March 6.

LB995, introduced by Elk Creek Sen. Lavon Heidemann, would allow county hospitals to obtain lines of credit without a public vote. Heidemann said the current system used to fund expenditures is too cumbersome.

“The current warrant system puts [county hospitals] at a distinct competitive disadvantage,” he said. “By giving this flexibility, the bill attempts to bring county hospitals more in line with peer hospitals.”

The bill would allow a county hospital 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 its jurisdiction.

Use of general bonds to fund new projects still would require a public vote.

A Health and Human Services Committee amendment, adopted 31-0, would require county board approval for any issuance of revenue bonds for which the revenue of the facility has been pledged. The hospital’s board of trustees also would be required to file bylaws, rules and regulations with the county board.

Senators advanced the bill to select file 33-0.