Funds appropriated to the department for the purposes of this chapter shall be distributed as follows:
(a) The department shall compute the annual amount of financial assistance available to each eligible children’s hospital based upon the ratio of each hospital’s uncompensated care costs to the total uncompensated care costs of all children’s hospitals in the state.
(b) The department shall enter into a contract with each children’s hospital receiving funding pursuant to this section and may make quarterly payments provided that the hospital has complied with subdivision (a) of Section 16996.2.
(c) Each children’s hospital shall, as a condition of receiving financial assistance under this section, submit reports to the department, as required by the department, describing its use of funds received pursuant to this section.
(Amended by Stats. 1990, Ch. 50, Sec. 29. Effective April 18, 1990.)