SB574 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Mark Slade Blackwell
Republican
Session: Regular Session 2012
Title: Health, creation of health care authority in Class 1 municipality, powers, duties etc.
Summary: SB574 would create a Health Care Authority in a Class 1 Alabama municipality to operate or reorganize a county general-care hospital and related facilities.
What This Bill Does
The bill would authorize the new Health Care Authority to take over the county’s general-care hospital, lease the hospital’s parking deck, and build new health facilities. After taking over, the authority must choose within six months among: (a) constructing a new outpatient/urgent care facility, (b) continuing the hospital as a 50–150 bed acute care hospital, or (c) entering a management affiliation to reduce the hospital’s size and operations. It gives the authority financing powers (borrowing, issuing securities, pledging revenues, mortgaging assets) and requires an action plan be shared with the Jefferson County Commission and local delegation, ensuring care standards. The authority would operate independently of the county’s general revenue and must publish annual audited financial statements, with asset sales requiring a public referendum.

Who It Affects
Residents and patients in the Class 1 municipality and surrounding area, who would be served by the hospital and any new outpatient/urgent care facilities and changes in hospital size or services.
County government and hospital stakeholders (including the county commission, county health department, the director of the existing hospital, and local medical groups such as Birmingham Health Care, Inc. and the Mineral District Medical Society) who would oversee, plan, and appoint members to the new Authority and respond to its actions.

Key Provisions
Creates a Health Care Authority in a Class 1 municipality to operate a nonprofit health care facility and related duties, with power to take over the county’s general-care hospital and lease its parking deck.
The Authority must, within six months of taking over, choose one of three paths: build an outpatient clinic/urgent care facility; continue operating the hospital as a 50–150 bed acute care hospital; or enter into a management affiliation to reduce the hospital’s size and operations.
Authority can borrow money, issue securities, pledge revenues (including tax revenues), mortgage assets, and finance construction and maintenance of facilities; asset sales require a referendum before proceeding.
Annual audited financial statements must be produced and shared with the Jefferson County Commission and local legislative delegation.
Authority operates independently and cannot require additional county revenue; board includes specified appointments (Governor, Mayor, regional hospital association, county commission, county health department, Birmingham Health Care, Inc., Mineral District Medical Society, and the current hospital director) with diversity requirements and defined terms.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Class 1 Municipalities