4 | 4 | | HB.docx |
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7 | 7 | | General Assembly Substitute Bill No. 5449 |
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8 | 8 | | February Session, 2022 |
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14 | 14 | | AN ACT CONCERNING CERTIFICATES OF NEED. |
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15 | 15 | | Be it enacted by the Senate and House of Representatives in General |
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16 | 16 | | Assembly convened: |
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17 | 17 | | |
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18 | 18 | | Section 1. (NEW) (Effective from passage) No health care provider 1 |
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19 | 19 | | required to receive approval for a certificate of need to build a new 2 |
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20 | 20 | | facility or expand an existing facility pursuant to chapter 368z of the 3 |
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21 | 21 | | general statutes shall break ground on any new facility or expansion of 4 |
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22 | 22 | | an existing facility until the health care provider is in receipt of approval 5 |
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23 | 23 | | pursuant to said chapter. 6 |
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24 | 24 | | Sec. 2. (NEW) (Effective October 1, 2022) (a) The State of Connecticut 7 |
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25 | 25 | | Health and Educational Facilities Authority shall not issue a bond to a 8 |
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26 | 26 | | health care provider when such provider is required to obtain approval 9 |
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27 | 27 | | for a certificate of need to build a new facility or expand an existing 10 |
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28 | 28 | | facility pursuant to chapter 368z of the general statutes, unless the 11 |
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29 | 29 | | authority has reviewed a capital budget with recommendations 12 |
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30 | 30 | | provided by the Office of Health Strategy. 13 |
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31 | 31 | | (b) The Office of Health Strategy, in making recommendations to the 14 |
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32 | 32 | | State of Connecticut Health and Educational Facilities Authority 15 |
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33 | 33 | | pursuant to subsection (a) of this section, shall assess the reasonableness 16 |
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34 | 34 | | of the budget and the projected impact to the health care market and 17 |
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35 | 35 | | pricing in the area. 18 Substitute Bill No. 5449 |
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40 | 40 | | 2 of 4 |
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42 | 42 | | Sec. 3. Subsection (a) of section 19a-639a of the general statutes is 19 |
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43 | 43 | | repealed and the following is substituted in lieu thereof (Effective October 20 |
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44 | 44 | | 1, 2022): 21 |
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45 | 45 | | (a) An application for a certificate of need shall be filed with the unit 22 |
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46 | 46 | | in accordance with the provisions of this section and any regulations 23 |
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47 | 47 | | adopted by the Office of Health Strategy. The application shall address 24 |
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48 | 48 | | the guidelines and principles set forth in (1) subsection (a) of section 19a-25 |
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49 | 49 | | 639, and (2) regulations adopted by the department. The applicant shall 26 |
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50 | 50 | | include with the application a nonrefundable application fee [of five 27 |
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51 | 51 | | hundred dollars] based on the cost of the project. The amount of the fee 28 |
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52 | 52 | | shall be as follows: (A) One thousand five hundred dollars for a project 29 |
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53 | 53 | | that will cost not greater than fifty thousand dollars; (B) two thousand 30 |
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54 | 54 | | five hundred dollars for a project that will cost greater than fifty 31 |
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55 | 55 | | thousand dollars but not greater than one hundred thousand dollars; 32 |
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56 | 56 | | (C) five thousand dollars for a project that will cost greater than one 33 |
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57 | 57 | | hundred thousand dollars but not greater than five hundred thousand 34 |
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58 | 58 | | dollars; (D) ten thousand dollars for a project that will cost greater than 35 |
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59 | 59 | | five hundred thousand dollars but not greater than one million dollars; 36 |
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60 | 60 | | (E) fifteen thousand dollars for a project that will cost greater than one 37 |
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61 | 61 | | million dollars but not greater than five million dollars; (F) twenty 38 |
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62 | 62 | | thousand dollars for a project that will cost greater than five million 39 |
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63 | 63 | | dollars but not greater than ten million dollars; and (G) twenty-five 40 |
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64 | 64 | | thousand dollars for a project that will cost greater than ten million 41 |
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65 | 65 | | dollars. 42 |
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66 | 66 | | Sec. 4. (Effective from passage) (a) (1) The Office of Health Strategy shall 43 |
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67 | 67 | | conduct a study concerning certificates of need, required pursuant to 44 |
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68 | 68 | | chapter 368z of the general statutes, in the state. 45 |
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69 | 69 | | (2) Not later than January 15, 2023, the Office of Health Strategy shall 46 |
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70 | 70 | | submit a report, in accordance with the provisions of section 11-4a of the 47 |
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71 | 71 | | general statutes, concerning the results of such study to the joint 48 |
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72 | 72 | | standing committee of the General Assembly having cognizance of 49 |
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73 | 73 | | matters relating to insurance. 50 Substitute Bill No. 5449 |
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74 | 74 | | |
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78 | 78 | | 3 of 4 |
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79 | 79 | | |
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80 | 80 | | (b) The report shall consider and make recommendations concerning 51 |
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81 | 81 | | the following matters: 52 |
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82 | 82 | | (1) The institution of a price increase cap that is tied to the cost growth 53 |
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83 | 83 | | benchmark for consolidations; 54 |
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84 | 84 | | (2) Guaranteed local representation of communities on hospital 55 |
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85 | 85 | | boards; 56 |
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86 | 86 | | (3) Changes to the Office of Health Strategy's long-term, state-wide 57 |
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87 | 87 | | health plan to include an analysis of services and facilities and the 58 |
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88 | 88 | | impact of such services and facilities on equity and underserved 59 |
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89 | 89 | | populations; 60 |
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90 | 90 | | (4) Setting standards for measuring quality as a result of a 61 |
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91 | 91 | | consolidation; 62 |
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92 | 92 | | (5) Enacting higher penalties for noncompliance and increasing the 63 |
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93 | 93 | | staff needed for enforcement; 64 |
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94 | 94 | | (6) The Attorney General's authority to stop activities as the result of 65 |
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95 | 95 | | a certificate of need application or complaint; 66 |
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96 | 96 | | (7) The ability of representatives of the workforce and the community 67 |
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97 | 97 | | to intervene or appeal decisions; 68 |
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98 | 98 | | (8) Giving the Office of Health Strategy the authority to require an 69 |
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99 | 99 | | ongoing investment to address community needs; and 70 |
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100 | 100 | | (9) Capturing lost property taxes from hospitals that have converted 71 |
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101 | 101 | | to nonprofit entities. 72 |
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102 | 102 | | This act shall take effect as follows and shall amend the following |
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103 | 103 | | sections: |
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104 | 104 | | |
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105 | 105 | | Section 1 from passage New section |
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106 | 106 | | Sec. 2 October 1, 2022 New section |
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107 | 107 | | Sec. 3 October 1, 2022 19a-639a(a) |
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108 | 108 | | Sec. 4 from passage New section Substitute Bill No. 5449 |
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109 | 109 | | |
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110 | 110 | | |
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111 | 111 | | LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05449- |
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