CHAPTER 473

An Act to amend and reenact §§ 32-292 and 32-298.1, as amended, relating,
respectively, to the allocation and payment of funds to counties and
cities for hospitalization and treatment of indigent persons, and to
certain contracts for hospitalization, care and treatment. [8 193)

Approved March 30, 1956

Be it enacted by the General Assembly of Virginia:

1. That §§ 32-292 and 32-293.1, as amended, be amended and reenacted
as follows:

§ 32-292. (a) The State Board of Welfare and Institutions shall
allocate semiannually to the counties and cities of the Commonwealth on
the basis of population as shown by the last preceding United States
census, such funds as may be appropriated by the General Assembly for
this purpose, such funds for services so allocated to be used by such
counties and cities for meeting one-half of the cost to such localities of
hospitalization and treatment, excluding out-patient service, at hospitals
approved by the Board, of indigent persons residing therein, provided that
localities may expend out of their local funds at a per diem hospital rate in
excess of the maximum rate fixed by the State Board, but no reimbursement
of such excess shall be made from State funds. Any funds for services
allocated to a county or city which remain unused at the end of any six-
month period shall be * added to and made a part of the reserve fund as pro-
vided for in paragraph (c) of this section.

(b) All payments to counties and cities out of funds appropriated to
the Department of Welfare and Institutions and duly allocated for use by
such localities or for matching their costs in excess of such allocations under
the terms of this chapter shall be made by the State Treasurer on warrants
of the Comptroller issued on vouchers duly executed by the Director of the
Department of Welfare and Institutions on satisfactory proof of the
amounts expended by the respective localities for hospitalization and treat-
ment of indigent persons.

(c) In addition to the funds appropriated by the General Assembly
for allocation to the counties and cities of the Commonwealth as above
provided, the State Board of Welfare and Institutions shall establish from
funds appropriated by the General Assembly for the purpose, a reserve
fund to be expended as hereinafter provided. Such reserve fund shall be
expended in meeting one-half the cost incurred by counties and cities for
hospitalization and treatment, excluding out-patient service, at hospitals
approved by the Board, of indigent persons residing therein provided that
such county or city seeking reimbursement from the reserve fund has ex-
hausted the allocation to it under paragraph (a) of this section
§ 32-293.1. All contracts made for hospitalization, care and treat-
ment hereunder shall provide that: .

* In the event that the patient requires hospitalization beyond the
length of stay as initially authorized by the county or city and in the further
event that before the expiration of the length of stay as initially author-
ized, the county or city from which * such patient is sent * is notified by the
hospital attending physician * that additional hospitalization is required,
such stay shall be at the expense of the county or city sending such patient,
provided that one-half of such costs, but not exceeding one-half of the per
diem fixed by the Department of Welfare and Institutions for the hospital-
tzation of indigent persons shall be defrayed by the State as * above pro-
vided. In no case shall any county or city be liable for the care or treat-
ment of any patient retained for teaching purposes and in such event the
cost of such care and treatment shall be borne by the retaining hospital.