AN ACT AMENDING CERTIFICATE OF NEED LAWS TO EXPAND ACCESS AND LOWER COSTS. SL 2021-129. Enacted Aug. 30, 2021. Sections 1 and 2 are effective Oct. 1, 2021. The remainder is effective Aug. 30, 2021.
Bill Summaries: S 462 CON/THRESHOLD AMDS. & CERTIFICATE EXPIRATIONS.
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Bill S 462 (2021-2022)Summary date: Aug 31 2021 - View Summary
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Bill S 462 (2021-2022)Summary date: May 5 2021 - View Summary
Senate amendment makes the following changes to the 2nd edition. Makes a clarifying change to the act's effective date provision.
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Bill S 462 (2021-2022)Summary date: Apr 28 2021 - View Summary
Senate committee substitute makes the following changes to the 1st edition.
Revises proposed GS 131E-189(d), providing for the expiration of a certificate of need issued for the construction of a health service facility upon the certificate holder failing to execute or commit to a contract for design services for the authorized project within the previously specified time frames. Restricts the application of the provisions to certificates of need issued on or after October 1, 2021. Adds the following new subsections. New subsection (e) provides for the expiration of a certificate of need issued prior to October 1, 2021, for the construction of a health service facility upon the certificate holder failing to execute or commit to a contract for design services for the authorized project by October 1, 2025, for projects costing over $50 million, or October 1, 2023, for projects costing $50 million or less. Provides that certificates of need issued for the construction of a health care facility prior to October 1, 2021, that has a specific deadline to execute or commit to a contract for design services for the project authorized by the certificate of need will not expire unless the holder fails to execute or commit a contract by that specified deadline. Provides for extensions for failure due to developments beyond the control of the certificate holder or other good cause.
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Bill S 462 (2021-2022)Summary date: Apr 1 2021 - View Summary
Revises defined terms applicable to certificates of need laws in Article 9, set forth in GS 131E-176, as follows. Changes the threshold criteria for diagnostic center to include a facility, program, or provider in which the total cost of all medical diagnostic equipment used by the facility which cost more than $10,000 or more exceeds $1.5 million (currently, the cost threshold is set at $500,000). Changes the threshold criteria for major medical equipment to include a unit or system used to provide medical or other health services which costs more than $2 million (currently, the threshold is $750,000). Changes the threshold criteria for new institutional health services to include the obligation of capital expenditure exceeding $4 million (was, $2 million) to develop or expand a health service or facility or relates to the provision of health services. Requires the cost threshold amount for diagnostic center, major medical equipment and new institutional health services to be adjusted annually, beginning September 30, 2022, as specified.
Enacts GS 131E-189(d), providing for the expiration of a certificate of need issued for the construction of a health service facility upon the certificate holder failing to initiate authorized construction within: four years after the approval becomes final for projects costing over $50 million; or two years after the approval becomes final for projects costing less than $50 million.
Makes the above provisions effective October 1, 2021.
Includes a severability clause.