Connecticut Senate Bill SB00095

Connecticut 2023 Regular Session

• Introduced: 1/12/23
• Refer: 1/12/23

Caption

An Act Increasing Oversight Of The Acquisition Of Physician Practices.

Impact

The proposed changes to state law will likely lead to a more transparent process in the acquisition of medical practices, as lower thresholds for CON will require hospitals to demonstrate the necessity and potential impacts of their acquisitions more rigorously. By implementing stricter oversight, the bill aims to protect patient care standards and maintain the quality of healthcare services by ensuring that acquisitions serve the public good and community needs.

Summary

Bill SB00095 seeks to enhance the regulatory oversight of the acquisition of physician practices by hospitals and other healthcare institutions. The primary objective of this legislation is to increase scrutiny over such acquisitions by lowering the threshold that triggers the need for a certificate of need (CON) when a hospital intends to purchase a physician practice. This adjustment is aimed at ensuring that the care provided to patients is not compromised by aggressive consolidation of medical practices under larger healthcare entities.

Contention

Despite the bill's intention to enhance patient care, it may face opposition from stakeholders in the healthcare industry who argue that the additional oversight could impede necessary business transactions and deter investments in the healthcare sector. Proponents of the bill contend that without adequate oversight, the acquisitions may lead to monopolistic behaviors, which can adversely affect healthcare access and quality. The balance between promoting health system efficiency and maintaining oversight will likely be a significant point of discussion as the bill progresses.