HS HB 129 -- MOHEFA LOANS (Smith)

This substitute permits the Missouri Health and Education
Facilities Authority to make loans to for profit and not-for--
profit health institutions or partnerships of for profit and
not-for-profit health institutions.  Currently, the authority is
limited to making such loans only to not-for-profit health
institutions.  The definition of health institutions is expanded
to include networks and other organizations of health care
providers.

The definition of health facilities is changed by the substitute
to allow loan proceeds from the authority to be used to finance
health delivery systems or networks which are useful in the
operation of a health institution.

FISCAL NOTE:  No impact on state funds.

HB 129 -- MISSOURI HEALTH AND EDUCATION FACILITIES AUTHORITY

SPONSOR:  Smith

COMMITTEE ACTION:  Voted "do pass" by the Committee on Science,
Technology and Critical Issues by a vote of 16 to 2.

This bill permits the Missouri Health and Education Facilities
Authority to make loans to for profit and not-for-profit health
institutions or partnerships of for profit and not-for-profit
health institutions.  Currently, the authority is limited to
making such loans only to not-for-profit health institutions.
The definition of health institutions is expanded to include
networks and other organizations of health care providers.

The definition of health facilities is changed by the bill to
allow loan proceeds from the authority to be used to finance
health delivery systems or networks which are useful in the
operation of a health institution.

The bill expressly authorizes educational or health institutions
to finance their capital projects or accounts receivables with
the proceeds of loans from the authority.  Under current law,
educational or health institutions must use the loan proceeds to
finance capital projects.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say the bill allows the Missouri Health
and Educational Facilities Authority to make loans to for profit
and not-for-profit health institution and joint ventures or
partnerships of not for profit and for profit health
institutions.  This bill reflects the changing needs of modern
medical delivery systems.

Testifying for the bill were:  Representative Smith; Missouri
Hospital Association; and Missouri Health and Education
Facilities Authority.

OPPONENTS:  There was no opposition voiced to the committee.

Michael Warrick, Research Analyst

HB 129 -- Missouri Health and Education Facilities Authority

Sponsor:  Smith (11)

This bill permits the Missouri Health and Education Facilities
Authority to make loans to for profit and not-for-profit health
institutions.  Currently, the authority is limited to making
such loans only to not-for-profit health institutions.  The
definition of health institutions is expanded to include
networks and other organizations of health care providers.

The definition of health facilities is changed by the bill to
allow loan proceeds from the authority to be used to finance
health delivery systems or networks which are useful in the
operation of a health institution.

The bill expressly authorizes educational or health institutions
to finance their capital projects or accounts receivables with
the proceeds of loans from the authority.  Under current law,
educational or health institutions must use the loan proceeds to
finance capital projects.