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repealed and the following is substituted in lieu thereof (Effective October 20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