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OLR Bill Analysis
SB 1539
AN ACT CONCERNING CERTIFICATES OF NEED.
SUMMARY
This bill modifies the state’s Certificate of Need (CON) program for
health care entities administered by the Office of Health Strategy’s
(OHS’s) Health Systems Planning Unit (HSPU). Under the program,
health care entities must generally receive CON approval when
establishing new facilities or services, changing ownership, acquiring
certain equipment, or terminating certain services.
Among other things, the bill does the following:
1. requires CON approval if a private equity company acquires a
controlling interest (direct or indirect) in a health care facility or
otherwise obtains the ability to exercise operational or
managerial control or decision-making authority over the facility
(§ 1);
2. requires HSPU to deny a CON application to terminate a
hospital’s labor and delivery services unless these services can be
accessed at another hospital within 25 miles of the requesting
hospital (§ 2);
3. requires the OHS commissioner, if she enters into an agreed
settlement with an applicant or negotiations for one, to post
notice about the settlement or negotiations on the OHS website
(§ 3);
4. prohibits HSPU from granting a request for intervenor status in
any public hearing held for a group practice’s CON application
(§ 3);
5. requires HSPU to implement an expedited CON review process 2025SB-01539-R000664-BA.DOCX
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for applications to increase a licensed health care facility’s bed
capacity and sets related requirements for this new process (§ 3);
and
6. requires OHS to post on its website notice about any CON appeal
of a final decision or agreed settlement (§ 4).
The bill also makes various technical and conforming changes.
EFFECTIVE DATE: October 1, 2025
§ 3 — INTERVENOR STATUS FO R GROUP PRACTICE
APPLICATIONS
Regardless of the state’s CON laws, the bill prohibits HSPU from
granting any request for intervenor status in a public hearing it holds on
a group practice CON application.
Under the bill, a “group practice” is up to five physicians organized
in a partnership, professional corporation, limited liability company
(LLC), medical foundation, nonprofit corporation, faculty practice plan,
or other similar entity with up to $2 million of investments. It is one in
which:
1. member physicians provide and bill substantially all of their
services in the practice’s name and payments are treated as group
receipts;
2. the practice’s overhead expenses and income are distributed by
a method the practice members determine; or
3. each physician in the practice provides substantially the full
range of services they normally provide through the joint use of
office space, facilities, equipment, or personnel.
The bill specifies that an entity that otherwise meets these criteria is
considered a group practice even if its shareholders, partners, or owners
include single-physician professional corporations, LLCs, or other
entities whose owners are individual physicians. 2025SB-01539-R000664-BA.DOCX
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§ 3 — EXPEDITED CON REVIEW FOR INCREASING FACILITY BEDS
Regardless of existing CON laws, the bill requires HSPU to develop
and implement an expedited CON review process for applications to
increase a licensed health care facility’s bed capacity. The unit must
issue a decision on an expedited application within 30 days after
receiving a complete application.
Under the bill, the expedited review process must allow HSPU to (1)
resolve an application by entering into an agreed settlement, approving
it (with or without conditions), or requiring the applicant to go through
the normal (non-expedited) CON process and (2) not require a public
hearing on an application.
If HSPU requires an applicant to apply through the normal CON
process it must (1) treat the expedited review application as a properly
filed CON application, (2) issue any request for additional information
within 30 days after notifying the applicant that they must use the
normal CON process, and (3) follow the procedures under existing law
to complete the review.
Under the bill, the expedited CON review process is not considered
a contested case under the Uniform Administrative Procedure Act
(UAPA) and HSPU’s decision on an expedited application is not
considered a final decision under the UAPA.
BACKGROUND
Related Bill
HB 7050, favorably reported by the Public Health Committee, makes
various changes to the CON program, such as (1) creating a new
expedited review process for applications to increase bed capacity; (2)
expanding the definition of “termination of services”; and (3) increasing,
from $200,000 to $300,000, the maximum amount OHS may charge an
applicant for certain independent consultant services. 2025SB-01539-R000664-BA.DOCX
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COMMITTEE ACTION
Public Health Committee
Joint Favorable
Yea 24 Nay 7 (03/27/2025)