OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-1395
AN ACT ESTABLISHING LICENSURE FOR LONG -TERM ACUTE
CARE HOSPITALS AND REQUIRING THE DEPARTMENT OF
PUBLIC HEALTH TO STUDY THE DESIGNATION OF LONG -TERM
CARE FACILITIES AND CHRONIC DISEASE HOSPITALS.
Primary Analyst: NB 4/7/25
Contributing Analyst(s): RP
Reviewer: JS
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Public Health, Dept. GF - Cost 50,900 43,100
Resources of the General Fund GF - Potential
Revenue Loss
Up to
37,500
Up to
50,000
State Comptroller - Fringe
Benefits
1
GF - Cost 17,600 17,600
Department of Emergency
Services and Public Protection
Applicant
Fingerprint Card
Submission
Account -
Potential
Revenue Loss
Up to 7,500 Up to
10,000
Public Health, Dept. GF – Potential
Revenue Impact
See Below See Below
Department of Emergency
Services and Public Protection
GF - Potential
Savings
See Below See Below
Note: GF=General Fund
Municipal Impact:
Municipalities Effect FY 26 $ FY 27 $
Various Municipal Police
Departments
Potential
Revenue
Loss
See Below See Below
1
The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 40.71% of payroll in FY 26. 2025SB-01395-R000579-FN.DOCX Page 2 of 3
Explanation
The bill creates a new licensure category for long-term acute care
hospitals. This results in an estimated total General Fund cost of up to
$68,500 in FY 26 and $60,700 in FY 27. Additionally, potential revenue
losses may result: (1) to General Fund of up to $37,500 in FY 26 and up
to $50,000 in FY 27; and (2) to the Applicant Fingerprint Card
Submission Account of up to $7,500 in FY 26 and $10,000 in FY 27.
Department of Public Health Licensure Category Establishment
The bill requires the Department of Public Health (DPH) to establish
a new licensure category for long-term acute care hospitals and study
the designation of long-term care facilities and chronic disease hospitals
(CDH). This results in an estimated cost to the agency of $50,900 in FY
26 and $43,100 in FY 27, with an estimated cost to the Office of the State
Comptroller for associated fringe benefits of $17,600 annually.
To draft and implement regulations for the new long-term acute care
hospital license, DPH needs support from two additional part-time (0.25
FTE) positions with a salary cost to the department of $43,100 in both FY
26 and FY 27: (1) a Staff Attorney 1, at an annual salary of $21,400 (plus
$8,700 fringe benefits); and (2) a Nurse Consultant, at an annual salary
of $21,700 (plus $8,900 fringe benefits). The Nurse Consultant will also
participate in conducting a study of long-term care facilities and CDH
designations, as well as assist with the development of a report to the
legislature, as required by the bill.
An additional one-time cost to DPH of $7,800 in FY 26 for 150 hours
of consultation with a healthcare consultant to assist with in the
required study and the final report.
DPH currently licenses three hospitals under the CDH category, but
it is unclear whether the three existing CDHs would transition to the
new long-term acute care licensure category once it is created. There is
a potential annual revenue change to the General Fund beginning in FY
26 depending on what licensure fees are created for the new category, if 2025SB-01395-R000579-FN.DOCX Page 3 of 3
any, and to the extent existing CDHs change to it.
Criminal Background Checks
Current law generally requires CDH employees with direct access to
patients to submit to state criminal history records checks. The bill does
not include this requirement for long-term acute care hospitals, which
may result in the following impacts, to the extent that facilities currently
licensed as CDHs switch to be licensed as long-term acute care hospitals:
(1) potential savings to the Department of Emergency Services and
Public Protection (DESPP); (2) a potential revenue loss to the General
Fund of up to $50,000 per fiscal year;
2
and (3) a potential revenue loss to
the Applicant Fingerprint Card Submission Account or various
municipal police departments of up to $10,000 per fiscal year,
3
beginning in FY 26. On average, about 660 CDH employees submit to
state criminal history checks annually. The potential savings to DESPP
would only occur if the decrease in workload is significant enough to
require fewer employees. The FY 26 costs above reflect the bill's partial
year implementation.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation. It is anticipated that the
DPH personnel costs will be limited to the biennium, as the new staff
are needed only for reporting and regulations development.
2
DESPP conducts state criminal history records checks for a fee of $75. The revenue
that is collected from this fee is deposited into the General Fund.
3
DESPP conducts fingerprinting for a fee of $15 fee per person paid to the Applicant
Fingerprint Card Submission Account. Municipal police departments may also
conduct the required fingerprinting for state criminal history records checks and
typically charge a fee of $10 to $15. Funds in the non-lapsing Applicant Fingerprint
Card Submission Account are used for IT support and maintenance for the
fingerprinting systems.