The bill establishes the Maternity Care Pilot Program, which will be administered by the State Department of Health. Under this program, the Department will select one hospital to receive a one-time grant of $5 million to support the addition of labor and delivery services. To qualify for the grant, hospitals must meet specific criteria, including being licensed, designated as a critical access hospital, organized as a charitable entity under Section 501(c)(3) of the Internal Revenue Code, and having been profitable for the two years prior to application. Additionally, the selected hospital must not currently offer labor and delivery services and must have the necessary space and staff, including at least one Certified Nurse-Midwife.

The bill outlines that grant funds can only be used for specific purposes, including staffing costs for an obstetrics team, acquisition of essential medical equipment and supplies, and educational classes related to maternal and infant health. Importantly, the funds cannot be used for construction or renovation costs. The State Commissioner of Health is authorized to create rules necessary for the implementation of the program. The act is set to take effect on July 1, 2025, and includes an emergency clause for immediate enactment upon passage and approval.