Bill Summary for H 126 (2019-2020)

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Summary date: 

Jun 27 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 126 (Public) Filed Wednesday, February 20, 2019
Intro. by Murphy, Dobson, Potts, Sasser.

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Bill summary

Senate committee substitute deletes the provisions of the 1st edition and now provides the following.

Part I.

Amends GS 131E-176, which sets outs defined terms applicable to Article 9, Certificate of Need. Amends bed capacity to specify space used exclusively for inpatient care at a health care facility. Changes the definition of diagnostic center to mean specified facilities in which the total cost of all the medical diagnostic equipment utilized by the facility which costs $10,000 or more exceeds $1.5 million (was, $500,000). Modifies terms throughout to remove reference to "psychiatric facilities," "kidney disease treatment centers," "intermediate care facilities for the mentally retarded," and "chemical dependency treatment facilities." Amends health service facility to exclude a licensable facility as defined in GS 122C-3(14)b. Modifies the term major medical equipment to mean a single unit or system of use to provide medical and other health services which costs more than $2 million (was, $750,000); provides that beginning September 30, 2022, and annually thereafter, the cost threshold set forth is to be adjusted using the Medical Care Index component of the CPI as specified. Changes the terminology to "intermediate care facility for individuals with intellectual disabilities" (was, mentally retarded). Modifies the term new institutional health services to include the obligation of any person of a capital expenditure exceeding $4 million (was, $2 million) to develop or expand a health service or a health service facility or which related to the provision of health service. Makes further technical, clarifying, and conforming changes.

Amends GS 131E-177 to prohibit the Department of Health and Human Services (DHHS) from including policies or need determinations that limit the number of operating rooms in gastrointestinal endoscopy rooms in developing a State Medical Facilities Plan. Makes further technical and clarifying changes.

Makes conforming changes to GS 131E-183, GS 131E-184, and GS 131E-186 to eliminate requirements related to certificates of need and review for ambulatory surgical facilities, psychiatric facilities, and intermediate care facilities for the mentally retarded.

Further amends GS 131E-184 regarding exemptions from certificate of need review. Adds new subsection (i) to require DHHS to exempt from certificate of need review the development, acquisition, construction, expansion, or replacement of a health service facility or health service that obtained certificate of need approval prior to October 1, 2019, as: a kidney dialysis disease treatment, including freestanding hemodialysis units; a chemical dependency treatment facility; intermediate care for individuals with intellectual disabilities; psychiatric facility; or any other licensable facility, as defined. 

Adds new subsection (j) to require DHHS to exempt from certificate of need review the establishment of a home health agency by a licensed continuing care retirement community to provide home health care services to one or more residents of the retirement community who have entered into a contract with the retirement community to receive continuing care services with lodging. Requires the continuing care retirement community to obtain a certificate of need if developing or offering services to any individual not a resident of the retirement community under a contract to receive continuing care services with lodging. Explicitly does not exempt from the State's home health agency licensure and certification requirements a continuing care retirement community that has been exempted from certificate of need review for the provision of home health services to one or more residents pursuant to new subsection (j). Provides that new subsection (j) applies to continuing care retirement communities engaged in the direct provision of home health services on or after October 1, 2019.

Enacts GS 131E-189(d) deeming a certificate of need for the construction of a health service facility to expire if the holder fails to initiate construction of the project authorized within (1) four years for a project that costs over $50 million and (2) two years for a project that costs $50 million or less.

Makes conforming repeals in GS 131E-175 (legislative findings).

Effective October 1, 2019.

Part II.

Enacts GS 131E-147 to require applications for an initial or renewal license for a ambulatory service center to state the number of procedure rooms on, and the number of procedures performed at, the premises named in the application.

Further amends GS 131E-176 to remove from the conversion of a specialty ambulatory surgical program to a multispecialty ambulatory surgical program, or the addition of a specialty to a specialty ambulatory surgical program, from the definition of new institutional health services.

Effective January 1, 2020.

Part III.

Provides a severability clause.

Makes conforming changes to the act's titles.