Arkansas Code Title 20. Public Health and Welfare § 20-77-103. Agreements with hospitals

(a) The Governor is authorized to enter into compacts or agreements with one (1) or more public-supported hospitals located within a reasonable distance from the Arkansas border which are used as teaching hospitals for state-supported medical schools in adjoining states. Under the terms of these agreements, the public-supported teaching hospitals shall agree to furnish medical and hospital services for indigent citizens of this state where payment is not available through public welfare or other programs and, upon the payment for these services, from the appropriation provided for by law, of an amount required to reasonably reimburse the public-supported hospital for the costs of these services.

(b) For the purposes of this section, a “public-supported hospital within a reasonable distance from the border of this state” means a public-supported hospital located within fifty (50) miles of the border of Arkansas.

(c) In determining the amount of payments to be made to any public-supported hospital used as a teaching hospital as provided in subsections (a) and (b) of this section, the Governor shall determine the extent to which medical and hospital services have been received by Arkansas citizens during previous years. These payments shall be based upon reasonable estimates of the cost of providing medical services for the year in which payments are to be made.

(d) Each agreement shall be for a fiscal year period but may be renewed, provided funds are appropriated for that purpose, upon mutual agreement of the Governor and the appropriate officials of the public-supported hospital in the other state.