Substitute Senate Bill No. 9, introduced in the February Session of 2024, aims to promote hospital financial stability by amending existing statutes, effective July 1, 2024. The bill expands the Commissioner of Public Health's authority to include censure and the assessment of civil penalties up to $25,000 for non-compliance with healthcare institution regulations. It also mandates the establishment of emergency department diversion policies and procedures, with the commissioner authorized to adopt regulations and assess civil penalties for non-compliance. The bill updates the definition of "health care facility" to include parent companies and affiliates, and specifies new categories for "transfer of ownership," which now encompasses transfers impacting governance, sales of net assets, and transfers of controlling interest. It outlines when a certificate of need (CON) is required, such as for new facilities, ownership transfers, and service terminations, and exempts certain equipment acquisitions and service terminations from CON requirements.

The bill also amends criteria for evaluating CON applications, focusing on public need, financial impact, quality of care, and access to care. It introduces a presumption in favor of approving CON applications for large group practice ownership transfers in response to a request for proposal. The bill allows the executive director to implement necessary policies and procedures, with a public hearing required before implementation. It specifies additional guidelines for deliberations involving hospital ownership transfers, including the consideration of alternative proposals and the impact on provider diversity and consumer choice. The bill mandates the hiring of an independent compliance reporter post-transfer for at least three years and requires hospitals to submit quarterly financial reports, with civil penalties for non-compliance. The effective dates for various sections are specified, with some provisions effective upon passage.

Statutes affected:
Governor's Bill:
PH Joint Favorable Substitute:
File No. 381: