Section 127190 Of Chapter 1. Health Planning From California Health And Safety Code >> Division 107. >> Part 2. >> Chapter 1.
127190
. Notwithstanding any other provision of this chapter, the
office shall exempt from Sections 127210 to 127275, inclusive, and
shall issue a certificate of need for, any health care project of a
health facility that agrees to provide free health care services to
indigents over a period of at least five years at a dollar value
equal to the dollar value of the exempted project at completion. The
annual dollar value of the free care shall be at a level equal to at
least 10 percent of the project value as determined in the agreement.
The free health care services shall be furnished in the form of
direct service or by reimbursement of costs incurred by other
facilities if an insufficient number of patients, as determined in
the agreement, are referred or present themselves for treatment to
account for the minimum 10 percent requirement.
The provision of free care pursuant to this section shall be in
accordance with an agreement executed between the health facility
granted an exemption and the office. If the health facility does not
meet the terms of the agreement, the department shall suspend the
license or special permit associated with the exempted project until
compliance with the terms is obtained. The obligations imposed by the
agreement shall not be discharged by virtue of transfer of
ownership, but shall be assumed by a new owner as a condition of
transfer.
"Free care," as used in this section, does not include either of
the following:
(a) Bad debt unless the debtor makes specific application for
relief as an indigent.
(b) Contractual allowances.