Maryland 2025 Regular Session

Maryland House Bill HB735 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0735
6	6
7	7	HOUSE BILL 735
8	8	J3 5lr0701
9	9	HB 804/24 – HGO
10	10	By: Delegates Grammer, Alston, Arentz, Arikan , Baker, Chisholm, Fisher,
11	11	Guzzone, Hill, Hutchinson, A. Johnson, Kerr, R. Lewis, Lopez, Mangione,
12	12	Martinez, McCaskill, McComas, M. Morgan, T. Morgan, Nawrocki, Phillips,
13	13	Reilly, Schmidt, Spiegel, Szeliga, Taveras, White Holland, Woods, and
14	14	Woorman
15	15	Introduced and read first time: January 27, 2025
16	16	Assigned to: Health and Government Operations
17	17
18	18	A BILL ENTITLED
19	19
20	20	AN ACT concerning 1
21	21
22	22	Certificate of Need – Psychiatric Health Care Facilities and Psychiatric and 2
23	23	Mental Health Services – Exemption 3
24	24
25	25	FOR the purpose of altering the definition of “medical service” for the purpose of providing 4
26	26	an exemption to the certificate of need requirement by removing psychiatry and any 5
27	27	subcategory of psychiatry; providing that a certificate of need is not required to 6
28	28	establish or operate a psychiatric health care facility or to offer psychiatric or other 7
29	29	mental health services at a health care facility; and generally relating to psychiatric 8
30	30	health care facilities and psychiatric and mental health services and exemptions to 9
31	31	the certificate of need requirement. 10
32	32
33	33	BY repealing and reenacting, with amendments, 11
34	34	Article – Health – General 12
35	35	Section 19–120(a) and (j) 13
36	36	Annotated Code of Maryland 14
37	37	(2023 Replacement Volume and 2024 Supplement) 15
38	38
39	39	BY adding to 16
40	40	Article – Health – General 17
41	41	Section 19–122.1 18
42	42	Annotated Code of Maryland 19
43	43	(2023 Replacement Volume and 2024 Supplement) 20
44	44
45	45	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
46	46	That the Laws of Maryland read as follows: 22
47	47
48	48	Article – Health – General 23 2 HOUSE BILL 735
49	49
50	50
51	51
52	52	19–120. 1
53	53
54	54	(a) (1) In this section the following words have the meanings indicated. 2
55	55
56	56	(2) “Consolidation” and “merger” include increases and decreases in bed 3
57	57	capacity or services among the components of an organization that: 4
58	58
59	59	(i) Operates more than one health care facility; or 5
60	60
61	61	(ii) Operates one or more health care facilities and holds an 6
62	62	outstanding certificate of need to construct a health care facility. 7
63	63
64	64	(3) (i) “Health care service” means any clinically related patient 8
65	65	service. 9
66	66
67	67	(ii) “Health care service” includes a medical service. 10
68	68
69	69	(4) “Hospital capital threshold” means the lesser of: 11
70	70
71	71	(i) 25% of the hospital’s gross regulated charges for the immediately 12
72	72	preceding year; or 13
73	73
74	74	(ii) $50,000,000. 14
75	75
76	76	(5) “Limited service hospital” means a health care facility that: 15
77	77
78	78	(i) Is licensed as a hospital on or after January 1, 1999; 16
79	79
80	80	(ii) Changes the type or scope of health care services offered by 17
81	81	eliminating the facility’s capability to admit or retain patients for overnight hospitalization; 18
82	82
83	83	(iii) Retains an emergency or urgent care center; and 19
84	84
85	85	(iv) Complies with the regulations adopted by the Secretary under § 20
86	86	19–307.1 of this title. 21
87	87
88	88	(6) “Medical service” means: 22
89	89
90	90	(i) Any of the following categories of health care services: 23
91	91
92	92	1. Medicine, surgery, gynecology, addictions; 24
93	93
94	94	2. Obstetrics; 25
95	95
96	96	3. Pediatrics; 26
97	97	HOUSE BILL 735 3
98	98
99	99
100	100	4. [Psychiatry; 1
101	101
102	102	5.] Rehabilitation; 2
103	103
104	104	[6.] 5. Chronic care; 3
105	105
106	106	[7.] 6. Comprehensive care; 4
107	107
108	108	[8.] 7. Extended care; 5
109	109
110	110	[9.] 8. Intermediate care; or 6
111	111
112	112	[10.] 9. Residential treatment; or 7
113	113
114	114	(ii) Any subcategory of the rehabilitation, [psychiatry,] 8
115	115	comprehensive care, or intermediate care categories of health care services for which need 9
116	116	is projected in the State health plan. 10
117	117
118	118	(j) (1) A certificate of need is required before the type or scope of any health 11
119	119	care service is changed if the health care service: 12
120	120
121	121	(i) Is offered: 13
122	122
123	123	1. By a health care facility; 14
124	124
125	125	2. In space that is leased from a health care facility; or 15
126	126
127	127	3. In space that is on land leased from a health care facility; 16
128	128	or 17
129	129
130	130	(ii) Results in a change in operating room capacity in a hospital, a 18
131	131	freestanding medical facility, or an ambulatory surgical facility. 19
132	132
133	133	(2) This subsection does not apply if: 20
134	134
135	135	(i) The Commission adopts limits for changes in health care services 21
136	136	and the proposed change would not exceed those limits; 22
137	137
138	138	(ii) The proposed change and the annual operating revenue that 23
139	139	would result from the addition is entirely associated with the use of medical equipment; 24
140	140
141	141	(iii) The proposed change would establish, increase, or decrease a 25
142	142	health care service and the change would not result in the: 26
143	143
144	144	1. Establishment of a new medical service or elimination of 27
145	145	an existing medical service; 28 4 HOUSE BILL 735
146	146
147	147
148	148
149	149	2. Establishment of a cardiac surgery, organ transplant 1
150	150	surgery, or burn or neonatal intensive health care service; 2
151	151
152	152	3. Except as provided in § 19–120.1 of this subtitle, 3
153	153	establishment of percutaneous coronary intervention services; 4
154	154
155	155	4. Establishment of a home health program, hospice 5
156	156	program, or freestanding ambulatory surgical center or facility; or 6
157	157
158	158	5. Expansion of a comprehensive care, extended care, 7
159	159	intermediate care, residential treatment, [psychiatry,] or rehabilitation medical service, 8
160	160	except for an expansion related to an increase in total bed capacity in accordance with 9
161	161	subsection (h)(2)(i) of this section; or 10
162	162
163	163	(iv) 1. At least 45 days before increasing or decreasing the 11
164	164	volume of one or more health care services, written notice of intent to change the volume of 12
165	165	health care services is filed with the Commission; 13
166	166
167	167	2. The Commission in its sole discretion finds that the 14
168	168	proposed change: 15
169	169
170	170	A. Is pursuant to: 16
171	171
172	172	I. The consolidation or merger of two or more health care 17
173	173	facilities; 18
174	174
175	175	II. The conversion of a health care facility or part of a facility 19
176	176	to a nonhealth–related use; 20
177	177
178	178	III. The conversion of a hospital to a limited service hospital; 21
179	179	or 22
180	180
181	181	IV. The conversion of a licensed general hospital to a 23
182	182	freestanding medical facility in accordance with subsection (o)(3) of this section; 24
183	183
184	184	B. Is not inconsistent with the State health plan or the 25
185	185	institution–specific plan developed and adopted by the Commission; 26
186	186
187	187	C. Will result in the delivery of more efficient and effective 27
188	188	health care services; and 28
189	189
190	190	D. Is in the public interest; and 29
191	191
192	192	3. Within 45 days of receiving notice under item 1 of this 30
193	193	item, the Commission notifies the health care facility of its finding. 31
194	194	HOUSE BILL 735 5
195	195
196	196
197	197	(3) Notwithstanding the provisions of paragraph (2) of this subsection, a 1
198	198	certificate of need is required: 2
199	199
200	200	(i) Before an additional home health agency, branch office, or home 3
201	201	health care service is established by an existing health care agency or facility; 4
202	202
203	203	(ii) Before an existing home health agency or health care facility 5
204	204	establishes a home health agency or home health care service at a location in the service 6
205	205	area not included under a previous certificate of need or license; 7
206	206
207	207	(iii) Before a transfer of ownership of any branch office of a home 8
208	208	health agency or home health care service of an existing health care facility that separates 9
209	209	the ownership of the branch office from the home health agency or home health care service 10
210	210	of an existing health care facility which established the branch office; or 11
211	211
212	212	(iv) Before the expansion of a home health service or program by a 12
213	213	health care facility that: 13
214	214
215	215	1. Established the home health service or program without a 14
216	216	certificate of need between January 1, 1984, and July 1, 1984; and 15
217	217
218	218	2. During a 1–year period, the annual operating revenue of 16
219	219	the home health service or program would be greater than $333,000 after an annual 17
220	220	adjustment for inflation, based on an appropriate index specified by the Commission. 18
221	221
222	222	19–122.1. 19
223	223
224	224	NOTWITHSTANDING ANY O THER PROVISION OF LA W, A CERTIFICATE OF NEE D 20
225	225	IS NOT REQUIRED TO : 21
226	226
227	227	(1) ESTABLISH OR OPERATE A PSYCHIATRIC HEALTH CARE FACILITY; 22
228	228	OR 23
229	229
230	230	(2) OFFER PSYCHIATRIC OR OTHER MENTAL HEALTH SERVICES AT A 24
231	231	HEALTH CARE FACILITY , REGARDLESS OF WHETHE R THE HEALTH CARE FA CILITY 25
232	232	REQUIRES A CE RTIFICATE OF NEED UN DER THIS SUBTITLE . 26
233	233
234	234	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
235	235	October 1, 2025. 28
236	236