On Thursday, the Minnesota Senate passed bipartisan legislation to help state- and county-owned hospitals throughout Minnesota. The bill, Senate File 341, would reduce current restrictions on public hospitals allowing them to invest funds in securities to generate more capital for operations and improvements for their facilities.

“This piece of legislation is common sense reform that will allow 26 publicly owned hospitals, like Douglas County Hospital, level the playing field with non-profit hospitals so that they have the option to invests funds for future expenses,” said Sen. Bill Ingebrigtsen (R-Alexandria). “Changes to rules will not only make it easier for public hospitals to operate, but also have the potential to increase the quality of care and facilities for future patients.”

The legislation rolls back some stringent investment restrictions that had previously prohibited publicly owned hospitals from making securities investments. Under the new law public hospitals now have the choice to adopt written investment policies that would provide them more flexibility to invest hospital revenue funds in securities that which are recommended to them by investment advisors, banks, or trust companies.

The bill has received support from the Minnesota Hospital Association Policy & Advocacy Committee, and passed through the Senate on a unanimous vote of 65-0.  The legislation now awaits passage in the House before heading to the Governor’s desk.