Public hospitals could see fewer investment restrictions

Public hospitals would be able to invest more broadly under provisions of a bill passed 120-11 by the House Monday.

Sponsored by Rep. Mary Franson (R-Alexandria) and Sen. Bill Ingebrigtsen (R-Alexandria), HF559/SF341* would allow public hospitals to invest in securities recommended by registered advisors rather than only in government-backed securities as the law currently requires.

Bill proponents believe that restriction puts them at a financial disadvantage versus their private competitors.

“This puts public hospitals on an equal playing field with nonprofit hospitals,” Franson said.

However, Rep. Tina Liebling (DFL-Rochester) said she had concerns the bill could allow riskier investments with taxpayer dollars.

“There must have been a good reason why the Legislature put all of these entities under this restriction, and I would assume it’s because we’re dealing with taxpayer dollars,” Liebling said.

The bill now goes to the Gov. Mark Dayton for his consideration.