As Introduced

136th General Assembly

Regular Session H. B. No. 772

2025-2026

To enact sections 3701.89, 3701.891, and 3701.892 of the Revised Code to establish the Rural Health Transformation Program.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3701.89, 3701.891, and 3701.892 of the Revised Code be enacted to read as follows:

Sec. 3701.89. (A) As used in sections 3701.89 to 3701.892 of the Revised Code:

(1) "Freestanding birthing center" has the same meaning as in section 3701.503 of the Revised Code.

(2) "Health care provider" has the same meaning as in section 2105(h)(9) of the "Social Security Act," 42 U.S.C. 1397ee(h)(9).

(3) "Qualified entity" means a hospital, health care provider, rural health facility, government agency, or community partner that demonstrates to the department of health its ability to administer a component of the rural health transformation plan submitted by the department and approved by the United States centers for medicare and medicaid services under section 2105 of the "Social Security Act," 42 U.S.C. 1397ee that also meets any eligibility requirements established by the department.

(4) "Rural health facility" has the same meaning as in section 2105(h)(3)(D) of the "Social Security Act," 42 U.S.C. 1397ee(h)(3)(D).

(5) "Rural hospital" means a hospital located in a county that is not classified into core based statistical areas as designated in the inpatient prospective payment system case-mix and wage index table published by the United States centers for medicare and medicaid services.

(B) The rural health transformation program is established within the department of health. Under the program, the department shall distribute funding and implement a rural health transformation plan for health-related activities as authorized under section 2105(h) of the "Social Security Act," 42 U.S.C. 1397ee(h) and in accordance with the rural health transformation plan submitted by the department and approved by the United States centers for medicare and medicaid services. The department shall administer the program to the extent that federal funds are received by the department and are available for expenditure for the program.

(1) Allocate and distribute program funding to a qualified entity through a contract, grant agreement, program payment, recruitment or retention payment, or other funding mechanism, including through a request for funding, in the form and manner prescribed by the department. A qualified entity shall use program funding distributed under this section in accordance with applicable federal and state law and the rural health transformation plan submitted by the department and approved by the United States centers for medicare and medicaid services. The department shall give preference to qualified entities that utilize program funding to promote collaboration between rural freestanding birthing centers and rural hospitals for the provision of maternity services.

(2) Monitor, inspect, and audit the records of a qualified entity receiving program funding and withhold, recover, or reduce funding for noncompliance with the federally approved rural health transformation plan, an agreement governing the funding, or applicable federal or state law;

(3) Prepare and submit an annual report to members of the legislative task force on rural health established under section 3701.892 of the Revised Code, the president of the senate, the speaker of the house of representatives, and the governor. The report shall include all of the following:

(a) The total amount of funds expended during the fiscal year;

(b) The total amount of funds expended since the program began;

(d) The total number of qualified entities receiving program funding;

(e) A description of the program activities completed during the fiscal year;

(f) Identify each qualified entity receiving funding, the amount awarded, the purpose of the award, and the jurisdiction served.

Sec. 3701.891. The rural health transformation fund is created in the state treasury. The fund shall consist of money received from the federal government under section 2105 of the "Social Security Act," 42 U.S.C. 1397ee and shall be used by the department of health for the purpose of implementing the rural health transformation program established under section 3701.89 of the Revised Code. All money received by the department for purposes of this section shall be remitted to the state treasurer and credited to the rural health transformation fund. Upon expiration of the program, the fund shall be closed as required by federal law. The department shall not expend, obligate, encumber, transfer, or otherwise disburse any money from the fund to do any of the following:

(A) Supplant existing state or local medicaid expenditures or required state match;

(B) Duplicate existing programs or services already funded by the state;

Sec. 3701.892. (A) The legislative task force on rural health is created. The task force shall consist of twelve members: six members of the senate to be appointed by the senate president, and six members of the house of representatives to be appointed by the speaker of the house of representatives. In making appointments to the task force, the senate president and speaker of the house of representatives shall appoint members that represent the most rural areas of the state.

(B) Initial appointments to the task force shall be made not later than forty-five days after the effective date of this section. Thereafter, appointments shall be made within forty-five days after the commencement of the first regular session of each general assembly. Members shall serve for the remainder of the general assembly and until a successor is appointed.

(C) Following appointments to the task force, the members shall elect a chairperson from among its members. Thereafter, the task force shall meet at the call of the chairperson.

(D) The task force shall monitor implementation of the rural health transformation program established under section 3701.89 of the Revised Code and the use of money from the rural health transformation fund established under section 3701.891 of the Revised Code.