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W.Va House of Delegates has SB 767 – community hospital boards bill – on second reading Monday

By Crystal Good

For West Virginia Press

CHARLESTON, W.Va. — The West Virginia House of Delegates on Monday will consider a bill to change the law requiring hospital boards of directors maintain 40 percent of their membership is from consumer representatives.

Senate Bill 767 will be on second reading Monday, after the formality of introduction and first reading on Saturday. The bill passed through the House Health and Human Resource Committee on Friday.

SB 767, sponsored by Sen. Michael Maroney, R – Marshall, would repeal a 1983 law that requires at least 40 percent of the boards of directors of community hospitals be composed of an equal portion of consumer representatives from the following four categories: small businesses, organized labor, elderly persons and persons whose income is less than the national median income. The existing law also gives special considerations to select women, racial minorities and handicapped persons to ensure that representatives of the communities have a voice in their local healthcare system.

SB 767 would repeal Code 16-5B-6.

As it currently exists, Code 16-5B-6a  states … “The Legislature declares that a crisis in health care costs exists, that one important approach to deal with this crisis is to have widespread citizen participation in hospital decision making and that many hospitals in West Virginia exclude from their boards important categories of consumers, including small businesses, organized labor, elderly persons and lower-income consumers. The Legislature further declares that nonprofit hospitals receive such major revenue from public sources and are so crucial in health planning and development that it is necessary to require consumer representatives on their boards of directors. Therefore, the Legislature determines that nonprofit hospitals and hospitals owned by local governments should have boards of directors representative of the communities they serve.

At Friday’s committee meeting Delegate Amy Summers,  Majority Leader, R- Taylor, spoke in support of the bill, stating that repealing the requirements would allow financial experts and healthcare experts to serve instead.

The Hospital Association spoke in favor of repealing the mandate saying that the mandate is “checking the box rather than having people that have the ability to serve.”

The Hospital Association supported Summers statement that, “In a time when hospitals are struggling, they need to pick who they need and think they can help their hospitals survive and be strong.”

The Hospital Association said it is not easy to serve on hospital boards, “It’s not just a two-hour board meeting, it’s committee work and continuing education.” 

The Hospital Association cited geographical and population issues as limitations for fulfilling the mandate but also said, “Not a matter of finding people. It’s a matter of finding people that can make the commitment.  People that are not active because they don’t have the ability to attend meetings.”

Delegate Margaret Anne Staggers, D – Fayette, suggested board prospects attend open board meetings. In her experience this effort led to her board placement. She said of a medical board she served on, “ I kept showing up and there she is. That’s how I did it.”

The Hospital Association said that it was a complex situation and repealing the mandate doesn’t take small businesses, organized labor, elderly persons and persons whose income is less than the national median income off the board. The repeal would allow for more experts with day to day hospital operations expertise.

According to the Hospital Association, by testimony, no other non-profit is restricted with board mandates  and West Virginia is the only state in the country that has this restriction for hospitals.

Delegate Daniel Walker asked how many hospitals are having problems fulfilling their board requirements.

Representing 63 member hospitals the Hospital Association said, “I don’t have that data.”

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