Substitute Senate Bill No. 9 (sSB9 File No. 381) introduces amendments to the general statutes to enhance the financial stability of hospitals and regulate healthcare facilities more effectively. The bill empowers the Commissioner of Public Health to enforce compliance among healthcare facilities by imposing a range of disciplinary actions, including license revocation, suspension, censure, reprimands, probation, acquisition restrictions, compliance orders, correction plans, and civil penalties up to $25,000. It also defines terms related to emergency department diversions and saturation, setting requirements for hospitals' diversion policies and procedures, and detailing the roles of emergency medical service organizations during diversions. Hospitals failing to meet these requirements may incur civil penalties up to $25,000. The bill updates definitions for "affiliate," "bed capacity," and "large group practice," and mandates the adoption of regulations and interim policies to implement these changes.

The bill significantly revises the Certificate of Need (CON) program, expanding the definition of "health care facility" to include related entities and specifying when a CON is required, such as for new facilities, ownership transfers, and service terminations. It exempts certain equipment acquisitions from CON requirements and allows mental health facilities to increase bed capacity without a CON until June 30, 2026. The bill also simplifies the CON issuance process for non-hospital ownership transfers until December 31, 2025, and requires recommendations for an expedited CON process for mental health facilities by January 1, 2025. The criteria for evaluating CON applications now include considerations of public need, financial impact, and quality of care, with a presumption in favor of approving applications for large group practice ownership transfers. The bill also addresses the impact of hospital consolidations on community access to care and affordability, and it requires the hiring of an independent compliance reporter for certain hospital ownership transfers. The bill's fiscal impact includes costs to the Office of Health Strategy and potential revenue gains from civil penalties and CON application fees, with various effective dates ranging from the date of passage to July 1, 2024, and October 1, 2024.

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