Vermont 2025-2026 Regular Session

Vermont Senate Bill S0020 Compare Versions

Only one version of the bill is available at this time.
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11 BILL AS INTRODUCED S.20
22 2025 Page 1 of 6
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55 VT LEG #379404 v.1
66 S.20 1
77 Introduced by Senators Gulick, Beck, Chittenden, Clarkson, Hart, Major, 2
88 Mattos, Vyhovsky, Watson, Weeks and White 3
99 Referred to Committee on 4
1010 Date: 5
1111 Subject: Health; health care facilities; Green Mountain Care Board; certificates 6
1212 of need 7
1313 Statement of purpose of bill as introduced: This bill proposes to increase the 8
1414 monetary thresholds that trigger a certificate of need requirement and to 9
1515 exempt health care services and health care facility projects that are the result 10
1616 of a contract awarded by the State of Vermont. 11
1717 An act relating to increasing the monetary thresholds for certificates of need 12
1818 It is hereby enacted by the General Assembly of the State of Vermont: 13
1919 Sec. 1. 18 V.S.A. § 9434 is amended to read: 14
2020 § 9434. CERTIFICATE OF NEED; GENERAL RULES 15
2121 (a) A health care facility other than a hospital shall not develop or have 16
2222 developed on its behalf a new health care project without issuance of a 17
2323 certificate of need by the Board. For purposes of this subsection, a “new 18
2424 health care project” includes the following: 19 BILL AS INTRODUCED S.20
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2828 VT LEG #379404 v.1
2929 (1) The construction, development, purchase, renovation, or other 1
3030 establishment of a health care facility, or any capital expenditure by or on 2
3131 behalf of a health care facility, for which the capital cost exceeds 3
3232 $1,500,000.00 $10,000,000.00. 4
3333 (2) A change from one licensing period to the next in the number of 5
3434 licensed beds of a health care facility through addition or conversion, or 6
3535 through relocation from one physical facility or site to another. 7
3636 (3) The offering of any home health service, or the transfer or 8
3737 conveyance of more than a 50 percent ownership interest in a health care 9
3838 facility other than a hospital or nursing home. 10
3939 (4) The purchase, lease, or other comparable arrangement of a single 11
4040 piece of diagnostic and therapeutic equipment for which the cost, or in the case 12
4141 of a donation the value, is in excess of $1,000,000.00 $10,000,000.00. For 13
4242 purposes of this subdivision, the purchase or lease of one or more articles of 14
4343 diagnostic or therapeutic equipment that are necessarily interdependent in the 15
4444 performance of their ordinary functions or that would constitute any health 16
4545 care facility included under subdivision 9432(8)(B) of this title, as determined 17
4646 by the Board, shall be considered together in calculating the amount of an 18
4747 expenditure. The Board’s determination of functional interdependence of 19
4848 items of equipment under this subdivision shall have the effect of a final 20
4949 decision and is subject to appeal under section 9381 of this title. 21 BILL AS INTRODUCED S.20
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5353 VT LEG #379404 v.1
5454 (5) The offering of a health care service or technology having an annual 1
5555 operating expense that exceeds $500,000.00 $10,000,000.00 for either of the 2
5656 next two budgeted fiscal years, if the service or technology was not offered or 3
5757 employed, either on a fixed or a mobile basis, by the health care facility within 4
5858 the previous three fiscal years. 5
5959 (6) The construction, development, purchase, lease, or other 6
6060 establishment or expansion of an ambulatory surgical center for which the cost 7
6161 exceeds $10,000,000.00. 8
6262 (b) A hospital shall not develop or have developed on its behalf a new 9
6363 health care project without issuance of a certificate of need by the Board. For 10
6464 purposes of this subsection, a “new health care project” includes the following: 11
6565 (1) The construction, development, purchase, renovation, or other 12
6666 establishment of a health care facility, or any capital expenditure by or on 13
6767 behalf of a hospital, for which the capital cost exceeds $3,000,000.00 14
6868 $10,000,000.00. 15
6969 (2) The purchase, lease, or other comparable arrangement of a single 16
7070 piece of diagnostic and therapeutic equipment for which the cost, or in the case 17
7171 of a donation the value, is in excess of $1,500,000.00 $10,000,000.00. For 18
7272 purposes of this subdivision, the purchase or lease of one or more articles of 19
7373 diagnostic or therapeutic equipment that are necessarily interdependent in the 20
7474 performance of their ordinary functions or that would constitute any health 21 BILL AS INTRODUCED S.20
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7878 VT LEG #379404 v.1
7979 care facility included under subdivision 9432(8)(B) of this title, as determined 1
8080 by the Board, shall be considered together in calculating the amount of an 2
8181 expenditure. The Board’s determination of functional interdependence of 3
8282 items of equipment under this subdivision shall have the effect of a final 4
8383 decision and is subject to appeal under section 9381 of this title. 5
8484 (3) The offering of a health care service or technology having an annual 6
8585 operating expense that exceeds $1,000,000.00 $10,000,000.00 for either of the 7
8686 next two budgeted fiscal years, if the service or technology was not offered or 8
8787 employed, either on a fixed or a mobile basis, by the hospital within the 9
8888 previous three fiscal years. 10
8989 (4) A change from one licensing period to the next in the number of 11
9090 licensed beds of a health care facility through addition or conversion, or 12
9191 through relocation from one physical facility or site to another. 13
9292 (5) The offering of any home health service. 14
9393 (c) In the case of a project that requires a certificate of need under this 15
9494 section, expenditures for which are anticipated to be in excess of 16
9595 $30,000,000.00 $50,000,000.00, the applicant first shall secure a conceptual 17
9696 development phase certificate of need, in accordance with the standards and 18
9797 procedures established in this subchapter, that permits the applicant to make 19
9898 expenditures for architectural services, engineering design services, or any 20
9999 other planning services, as defined by the Board, needed in connection with the 21 BILL AS INTRODUCED S.20
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103103 VT LEG #379404 v.1
104104 project. Upon completion of the conceptual development phase of the project, 1
105105 and before offering or further developing the project, the applicant shall secure 2
106106 a final certificate of need in accordance with the standards and procedures 3
107107 established in this subchapter. Applicants shall not be subject to sanctions for 4
108108 failure to comply with the provisions of this subsection if such failure is solely 5
109109 the result of good faith reliance on verified project cost estimates issued by 6
110110 qualified persons, which cost estimates would have led a reasonable person to 7
111111 conclude the project was not anticipated to be in excess of $30,000,000.00 8
112112 $50,000,000.00 and therefore not subject to this subsection. The provisions of 9
113113 this subsection notwithstanding, expenditures may be made in preparation for 10
114114 obtaining a conceptual development phase certificate of need, which 11
115115 expenditures shall not exceed $1,500,000.00 for non-hospitals or 12
116116 $3,000,000.00 for hospitals $10,000,000.00. 13
117117 (d) If the Board determines that a person required to obtain a certificate of 14
118118 need under this subchapter has separated a single project into components in 15
119119 order to avoid cost thresholds or other requirements under this subchapter, the 16
120120 person shall be required to submit an application for a certificate of need for 17
121121 the entire project, and the Board may proceed under section 9445 of this title. 18
122122 The Board’s determination under this subsection shall have the effect of a final 19
123123 decision and is subject to appeal under section 9381 of this title. 20 BILL AS INTRODUCED S.20
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128128 (e) The Board may periodically adjust the monetary jurisdictional 1
129129 thresholds contained in this section. In doing so, the Board shall reflect the 2
130130 same categories of health care facilities, services, and programs recognized in 3
131131 this section. Any adjustment by the Board shall not exceed an amount 4
132132 calculated using the cumulative Consumer Price Index rate of inflation. 5
133133 Sec. 2. 18 V.S.A. § 9435 is amended to read: 6
134134 § 9435. EXCLUSIONS 7
135135 * * * 8
136136 (i) Excluded from this subchapter are the offering of a health care service, 9
137137 or the construction, development, purchase, renovation, or other establishment 10
138138 of a health care facility, as the result of a contract awarded by the State of 11
139139 Vermont. 12
140140 Sec. 3. EFFECTIVE DATE 13
141141 This act shall take effect on July 1, 2025. 14