An Act establishing the Distressed Hospital Grant Program to award grants to distressed hospitals to prevent the reduction of services or cessation of operations; and making an appropriation.

HB 271 establishes a grant program to help financially struggling or geographically isolated hospitals in Pennsylvania avoid closing or cutting services. Hospitals must meet specific criteria (e.g., three consecutive years of financial losses or being over 25 miles from another hospital) and apply through the Department of Health to receive funds. Grants must be used solely to maintain operations - prohibiting executive pay - and applicants must certify they’ve explored partnerships with other providers. The Department of Health will review applications within 60 days and award funds until December 31, 2029, or until the allocated budget is exhausted.