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HB 1393

Hospitals; allow rural hospitals to join together to allow further purchasing power with third-party payors but retain their independence

2025-2026 Regular Session Introduced by James Burchett and 5 co-sponsors

Georgia bill allows rural hospitals to jointly negotiate with insurers while staying independent, enhancing bargaining power without requiring consolidation.

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Bill Summary · HB 1393

Legislative bill overview

HB 1393 allows rural hospitals in Georgia to form collaborative purchasing agreements and negotiate collectively with insurance companies and other third-party payors while maintaining their individual operational independence and governance. This creates a legal framework for rural hospitals to pool their bargaining power without merging into larger health systems, addressing a structural disadvantage they face against larger hospital networks.

Why is this important

Rural hospitals across the U.S. face significant financial pressures, including lower negotiating power with insurers, higher per-patient costs, and closure rates. By enabling collective purchasing without requiring consolidation, this bill could help rural hospitals reduce costs, improve financial viability, and maintain local healthcare access—particularly critical in medically underserved areas where hospital closures leave communities without emergency services.

Potential points of contention

  • Antitrust concerns: Collective negotiation by hospitals could raise federal antitrust questions about price-fixing or collusion, though state legislation typically receives some legal deference
  • Insurance company opposition: Third-party payors may resist organized rural hospital coalitions as they could increase negotiating leverage and potentially raise insurance costs
  • Defining "independence": The practical distinction between collaborative purchasing and de facto consolidation may create ambiguity in enforcement and could be challenged if arrangements become too integrated

Compiled from official sources — confirm details with the bill’s official record.

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