1 | 1 | | BILL AS INTRODUCED S.20 |
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2 | 2 | | 2025 Page 1 of 6 |
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4 | 4 | | |
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5 | 5 | | VT LEG #379404 v.1 |
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6 | 6 | | S.20 1 |
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7 | 7 | | Introduced by Senators Gulick, Beck, Chittenden, Clarkson, Hart, Major, 2 |
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8 | 8 | | Mattos, Vyhovsky, Watson, Weeks and White 3 |
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9 | 9 | | Referred to Committee on 4 |
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10 | 10 | | Date: 5 |
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11 | 11 | | Subject: Health; health care facilities; Green Mountain Care Board; certificates 6 |
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12 | 12 | | of need 7 |
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13 | 13 | | Statement of purpose of bill as introduced: This bill proposes to increase the 8 |
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14 | 14 | | monetary thresholds that trigger a certificate of need requirement and to 9 |
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15 | 15 | | exempt health care services and health care facility projects that are the result 10 |
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16 | 16 | | of a contract awarded by the State of Vermont. 11 |
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17 | 17 | | An act relating to increasing the monetary thresholds for certificates of need 12 |
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18 | 18 | | It is hereby enacted by the General Assembly of the State of Vermont: 13 |
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19 | 19 | | Sec. 1. 18 V.S.A. § 9434 is amended to read: 14 |
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20 | 20 | | § 9434. CERTIFICATE OF NEED; GENERAL RULES 15 |
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21 | 21 | | (a) A health care facility other than a hospital shall not develop or have 16 |
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22 | 22 | | developed on its behalf a new health care project without issuance of a 17 |
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23 | 23 | | certificate of need by the Board. For purposes of this subsection, a “new 18 |
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24 | 24 | | health care project” includes the following: 19 BILL AS INTRODUCED S.20 |
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25 | 25 | | 2025 Page 2 of 6 |
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26 | 26 | | |
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27 | 27 | | |
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28 | 28 | | VT LEG #379404 v.1 |
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29 | 29 | | (1) The construction, development, purchase, renovation, or other 1 |
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30 | 30 | | establishment of a health care facility, or any capital expenditure by or on 2 |
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31 | 31 | | behalf of a health care facility, for which the capital cost exceeds 3 |
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32 | 32 | | $1,500,000.00 $10,000,000.00. 4 |
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33 | 33 | | (2) A change from one licensing period to the next in the number of 5 |
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34 | 34 | | licensed beds of a health care facility through addition or conversion, or 6 |
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35 | 35 | | through relocation from one physical facility or site to another. 7 |
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36 | 36 | | (3) The offering of any home health service, or the transfer or 8 |
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37 | 37 | | conveyance of more than a 50 percent ownership interest in a health care 9 |
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38 | 38 | | facility other than a hospital or nursing home. 10 |
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39 | 39 | | (4) The purchase, lease, or other comparable arrangement of a single 11 |
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40 | 40 | | piece of diagnostic and therapeutic equipment for which the cost, or in the case 12 |
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41 | 41 | | of a donation the value, is in excess of $1,000,000.00 $10,000,000.00. For 13 |
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42 | 42 | | purposes of this subdivision, the purchase or lease of one or more articles of 14 |
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43 | 43 | | diagnostic or therapeutic equipment that are necessarily interdependent in the 15 |
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44 | 44 | | performance of their ordinary functions or that would constitute any health 16 |
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45 | 45 | | care facility included under subdivision 9432(8)(B) of this title, as determined 17 |
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46 | 46 | | by the Board, shall be considered together in calculating the amount of an 18 |
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47 | 47 | | expenditure. The Board’s determination of functional interdependence of 19 |
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48 | 48 | | items of equipment under this subdivision shall have the effect of a final 20 |
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49 | 49 | | decision and is subject to appeal under section 9381 of this title. 21 BILL AS INTRODUCED S.20 |
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50 | 50 | | 2025 Page 3 of 6 |
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51 | 51 | | |
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52 | 52 | | |
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53 | 53 | | VT LEG #379404 v.1 |
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54 | 54 | | (5) The offering of a health care service or technology having an annual 1 |
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55 | 55 | | operating expense that exceeds $500,000.00 $10,000,000.00 for either of the 2 |
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56 | 56 | | next two budgeted fiscal years, if the service or technology was not offered or 3 |
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57 | 57 | | employed, either on a fixed or a mobile basis, by the health care facility within 4 |
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58 | 58 | | the previous three fiscal years. 5 |
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59 | 59 | | (6) The construction, development, purchase, lease, or other 6 |
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60 | 60 | | establishment or expansion of an ambulatory surgical center for which the cost 7 |
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61 | 61 | | exceeds $10,000,000.00. 8 |
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62 | 62 | | (b) A hospital shall not develop or have developed on its behalf a new 9 |
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63 | 63 | | health care project without issuance of a certificate of need by the Board. For 10 |
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64 | 64 | | purposes of this subsection, a “new health care project” includes the following: 11 |
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65 | 65 | | (1) The construction, development, purchase, renovation, or other 12 |
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66 | 66 | | establishment of a health care facility, or any capital expenditure by or on 13 |
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67 | 67 | | behalf of a hospital, for which the capital cost exceeds $3,000,000.00 14 |
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68 | 68 | | $10,000,000.00. 15 |
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69 | 69 | | (2) The purchase, lease, or other comparable arrangement of a single 16 |
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70 | 70 | | piece of diagnostic and therapeutic equipment for which the cost, or in the case 17 |
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71 | 71 | | of a donation the value, is in excess of $1,500,000.00 $10,000,000.00. For 18 |
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72 | 72 | | purposes of this subdivision, the purchase or lease of one or more articles of 19 |
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73 | 73 | | diagnostic or therapeutic equipment that are necessarily interdependent in the 20 |
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74 | 74 | | performance of their ordinary functions or that would constitute any health 21 BILL AS INTRODUCED S.20 |
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75 | 75 | | 2025 Page 4 of 6 |
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76 | 76 | | |
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77 | 77 | | |
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78 | 78 | | VT LEG #379404 v.1 |
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79 | 79 | | care facility included under subdivision 9432(8)(B) of this title, as determined 1 |
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80 | 80 | | by the Board, shall be considered together in calculating the amount of an 2 |
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81 | 81 | | expenditure. The Board’s determination of functional interdependence of 3 |
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82 | 82 | | items of equipment under this subdivision shall have the effect of a final 4 |
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83 | 83 | | decision and is subject to appeal under section 9381 of this title. 5 |
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84 | 84 | | (3) The offering of a health care service or technology having an annual 6 |
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85 | 85 | | operating expense that exceeds $1,000,000.00 $10,000,000.00 for either of the 7 |
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86 | 86 | | next two budgeted fiscal years, if the service or technology was not offered or 8 |
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87 | 87 | | employed, either on a fixed or a mobile basis, by the hospital within the 9 |
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88 | 88 | | previous three fiscal years. 10 |
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89 | 89 | | (4) A change from one licensing period to the next in the number of 11 |
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90 | 90 | | licensed beds of a health care facility through addition or conversion, or 12 |
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91 | 91 | | through relocation from one physical facility or site to another. 13 |
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92 | 92 | | (5) The offering of any home health service. 14 |
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93 | 93 | | (c) In the case of a project that requires a certificate of need under this 15 |
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94 | 94 | | section, expenditures for which are anticipated to be in excess of 16 |
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95 | 95 | | $30,000,000.00 $50,000,000.00, the applicant first shall secure a conceptual 17 |
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96 | 96 | | development phase certificate of need, in accordance with the standards and 18 |
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97 | 97 | | procedures established in this subchapter, that permits the applicant to make 19 |
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98 | 98 | | expenditures for architectural services, engineering design services, or any 20 |
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99 | 99 | | other planning services, as defined by the Board, needed in connection with the 21 BILL AS INTRODUCED S.20 |
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100 | 100 | | 2025 Page 5 of 6 |
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101 | 101 | | |
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102 | 102 | | |
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103 | 103 | | VT LEG #379404 v.1 |
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104 | 104 | | project. Upon completion of the conceptual development phase of the project, 1 |
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105 | 105 | | and before offering or further developing the project, the applicant shall secure 2 |
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106 | 106 | | a final certificate of need in accordance with the standards and procedures 3 |
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107 | 107 | | established in this subchapter. Applicants shall not be subject to sanctions for 4 |
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108 | 108 | | failure to comply with the provisions of this subsection if such failure is solely 5 |
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109 | 109 | | the result of good faith reliance on verified project cost estimates issued by 6 |
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110 | 110 | | qualified persons, which cost estimates would have led a reasonable person to 7 |
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111 | 111 | | conclude the project was not anticipated to be in excess of $30,000,000.00 8 |
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112 | 112 | | $50,000,000.00 and therefore not subject to this subsection. The provisions of 9 |
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113 | 113 | | this subsection notwithstanding, expenditures may be made in preparation for 10 |
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114 | 114 | | obtaining a conceptual development phase certificate of need, which 11 |
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115 | 115 | | expenditures shall not exceed $1,500,000.00 for non-hospitals or 12 |
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116 | 116 | | $3,000,000.00 for hospitals $10,000,000.00. 13 |
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117 | 117 | | (d) If the Board determines that a person required to obtain a certificate of 14 |
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118 | 118 | | need under this subchapter has separated a single project into components in 15 |
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119 | 119 | | order to avoid cost thresholds or other requirements under this subchapter, the 16 |
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120 | 120 | | person shall be required to submit an application for a certificate of need for 17 |
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121 | 121 | | the entire project, and the Board may proceed under section 9445 of this title. 18 |
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122 | 122 | | The Board’s determination under this subsection shall have the effect of a final 19 |
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123 | 123 | | decision and is subject to appeal under section 9381 of this title. 20 BILL AS INTRODUCED S.20 |
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124 | 124 | | 2025 Page 6 of 6 |
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125 | 125 | | |
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126 | 126 | | |
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127 | 127 | | VT LEG #379404 v.1 |
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128 | 128 | | (e) The Board may periodically adjust the monetary jurisdictional 1 |
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129 | 129 | | thresholds contained in this section. In doing so, the Board shall reflect the 2 |
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130 | 130 | | same categories of health care facilities, services, and programs recognized in 3 |
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131 | 131 | | this section. Any adjustment by the Board shall not exceed an amount 4 |
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132 | 132 | | calculated using the cumulative Consumer Price Index rate of inflation. 5 |
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133 | 133 | | Sec. 2. 18 V.S.A. § 9435 is amended to read: 6 |
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134 | 134 | | § 9435. EXCLUSIONS 7 |
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135 | 135 | | * * * 8 |
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136 | 136 | | (i) Excluded from this subchapter are the offering of a health care service, 9 |
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137 | 137 | | or the construction, development, purchase, renovation, or other establishment 10 |
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138 | 138 | | of a health care facility, as the result of a contract awarded by the State of 11 |
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139 | 139 | | Vermont. 12 |
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140 | 140 | | Sec. 3. EFFECTIVE DATE 13 |
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141 | 141 | | This act shall take effect on July 1, 2025. 14 |
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