Connecticut 2022 Regular Session Status: In Committee 4 D cosponsors

HB 5449 — AN ACT CONCERNING CERTIFICATES OF NEED.

Last action — TABLED FOR HOUSE CALENDAR

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

14 added · 143 removed

14 line(s) added, 143 removed.

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House of Representatives General Assembly File No.
General Assembly Substitute Bill No.
343 February Session, 2022 Substitute House Bill No.
5449 February Session, 2022 AN ACT CONCERNING CERTIFICATES OF NEED.
5449 House of Representatives, April 6, 2022 The Committee on Insurance and Real Estate reported through REP.
WOOD, K.
ofthe29thDist., Chairperson oftheCommittee on the part of the House, that the substitute bill ought to pass.
AN ACT CONCERNING CERTIFICATES OF NEED.
(b) The Office of Health Strategy, in making recommendations to the sHB5449 / File No.
(b) The Office of Health Strategy, in making recommendations to the State of Connecticut Health and Educational Facilities Authority pursuant to subsection (a) of this section, shall assess the reasonableness of the budget and the projected impact to the health care market and pricing in the area.
343 1 sHB5449 File No.
LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05449-R021 of 4 HB.docx Substitute Bill No.
343 State of Connecticut Health and Educational Facilities Authority pursuant to subsection (a) of this section, shall assess the reasonableness of the budget and the projected impact to the health care market and pricing in the area.
5449 Sec.
Sec.
(2) Not later than January 15, 2023, the Office of Health Strategy shall submit a report, inaccordance withthe provisionsofsection11-4aof the sHB5449 / File No.
(2) Not later than January 15, 2023, the Office of Health Strategy shall submit a report, inaccordance withthe provisionsofsection11-4aof the general statutes, concerning the results of such study to the joint standing committee of the General Assembly having cognizance of matters relating to insurance.
343 2 sHB5449 File No.
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05449- 2 of 4 R02-HB.docx } Substitute Bill No.
343 general statutes, concerning the results of such study to the joint standing committee of the General Assembly having cognizance of matters relating to insurance.
5449 (b) The report shall consider and make recommendations concerning the following matters:
(b) The report shall consider and make recommendations concerning the following matters:
sHB5449 / File No.
Section 1 from passage New section Sec.
343 3 sHB5449 File No.
343 Section 1 from passage New section Sec.
4 from passage New section INS Joint Favorable Subst.
4 from passage New section LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05449- 3 of 4 R02-HB.docx } Substitute Bill No.
sHB5449 / File No.
5449 INS Joint Favorable Subst.
343 4 sHB5449 File No.
APP Joint Favorable LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05449- 4 of 4 R02-HB.docx }
343 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 23 $ FY 24 $ UConn Health Ctr.
GF - Cost See Below See Below State Comptroller - Fringe GF - Cost 30,195 30,195 Benefits1 Office of Health Strategy GF - Revenue 250,000 250,000 Gain Office of Health Strategy GF - Cost 574,500 74,500 Note:
GF=General Fund Municipal Impact:
None Explanation This bill addresses matters concerning the state’s certificate of need (CON) program for health care institutions, which is administered by the Office of Health Strategy (OHS).
OHS will need to hire one fiscal analyst position, with a salary of $74,500, to review the capital budget presented by a health care facility seeking financing from Connecticut Health and Educational Facilities Authority (CHEFA).
OHS does not currently have staff with the specialized expertise required to project the impact on the health care market and pricing.
The bill also changes the CON application fee from $500 to a range of $1,500 to $25,000 depending on the proposed project's cost.
Based on a 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 40.53% of payroll in FY 23.
sHB5449 / File No.
343 5 sHB5449 File No.
343 four-year average of CON proposals, the bill's fee schedule is anticipated to generate an additional $250,000 in annual revenue.
The current fee of $500 generates approximately $12,500 annually.
This increase in the application fee results in a cost to UConn Health Center eachtime theentity appliesfor aCON.
The health center expects to apply for one CON in either FY 23 or FY 24.
The cost will be equal to the difference between the current fee ($500) and the new fees based on project costs ($1,000 to $25,000).
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Lastly, the bill requires OHS to study the state’s CON program and submit a report to the Insurance and Real Estate Committee by January 15, 2023.
OHS will need to hire a one-time consultant as the scope of this study is outside staff's areas of expertise.
The cost for a consultant to complete this study in the limited eight-month timeframe is estimated to be $500,000.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.
sHB5449 / File No.
343 6 sHB5449 File No.
343 OLR Bill Analysis sHB 5449 AN ACT CONCERNING CERTIFICATES OF NEED.
SUMMARY This bill addresses matters concerning the state’s certificate of need (CON) program for health care institutions, which is administered by the Office of Health Strategy’s (OHS) Health Systems Planning Unit.
Under the CON law, health care facilities (e.g., hospitals, freestanding emergency departments, and outpatient surgical facilities) must generally receive state approval when (1) establishing new facilities or services, (2) changing ownership, (3) acquiring certain equipment, or (4) terminating certain services.
Primarily, the bill does the following:
1.
prohibits a health care provider from breaking ground on a new or expanded facility unless OHS has approved a CON;
2.
increases the CON application fee from $500 to a range of $1,500 to $25,000 depending on the proposed project’s cost;
3.
prohibits the Connecticut Health and Educational Facilities Authority (CHEFA)fromissuing abondto ahealth care provider who needs an approved CON for a new or expanded facility unless CHEFA has reviewed a capital budget with recommendations from OHS;
4.
requires OHS, when making recommendations to CHEFA, to assess the capital budget’s reasonableness and the projected impact to the area’s health care market and pricing;
and 5.
requires OHS to study the state’s CON program and submit a report to the Insurance and Real Estate Committee by January 15, sHB5449 / File No.
343 7 sHB5449 File No.
343 2023, with recommendations on specified matters.
EFFECTIVE DATE:
Upon passage, except the application fee and CHEFA-related provisions are effective October 1, 2022.
APPLICATION FEE The bill increases the CON nonrefundable application fee from $500 to a range of $1,500 to $25,000 depending on the proposed project’s cost, as shown in Table 1 below.
Table 1:
CON Application Fees under the Bill Application Fee Project Cost $1,500 Up to $50,000 $2,500 >$50,000 and up to $100,000 $5,000 >$100,000 and up to $500,000 $10,000 >$500,000 and up to $1 million $15,000 >$1 million and up to $5 million $20,000 >$5 million and up to $10 million $25,000 >$10 million OHS CON STUDY Under the bill, OHS must study the state’s CON program and submit a reporttotheInsurance andRealEstateCommittee by January15,2023.
The report must consider and make recommendations on the following:
1.
instituting a price increase cap tied to the cost growth benchmark for consolidations, 2.
guaranteeing local community representation on hospital boards, 3.
changing OHS’ long-term statewide health plan to include an analysis of services and facilities and their impact on equity and underserved populations, 4.
setting standards for measuring quality as a result of a sHB5449 / File No.
343 8 sHB5449 File No.
343 consolidation, 5.
enacting higher penalties for noncompliance and increasing enforcement staff;
6.
the attorney general’s authority to stop activities as a result of a CON application or complaint, 7.
the ability of workforce and community representatives to intervene or appeal decisions, 8.
giving OHS authority to require an ongoing investment to address community needs, and 9.
capturing lost property taxes from hospitals that have converted to nonprofit entities.
COMMITTEE ACTION Insurance and Real Estate Committee Joint Favorable Substitute Yea 17 Nay 0 (03/22/2022) sHB5449 / File No.
343 9
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Action History

  1. TABLED FOR HOUSE CALENDAR

  2. NO NEW FILE BY COMM. ON Appropriations

  3. RPTD. OUT OF LCO

  4. FILED WITH LCO

  5. Joint Favorable

  6. REF. BY HOUSE TO COMMITTEE ON Appropriations

  7. FILE NO. 343

  8. HOUSE CALENDAR NUMBER 255

  9. FAV. RPT., TABLED FOR HOUSE CALENDAR

  10. RPTD. OUT OF LCO

  11. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/05/22

  12. FILED WITH LCO

  13. Joint Favorable Substitute

  14. PUBLIC HEARING 0317

  15. REF. TO JOINT COMM. ON Insurance and Real Estate

Sponsors

Sponsorship breakdown

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6 sponsors · 0 co-sponsors · 181 not signed on

Sponsors (6)

Co-sponsors (0)

None.

Not signed on (181)

181 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors HB 5449?
HB 5449 is sponsored by Rick Lopes (Democratic), Anne M. Hughes (Democratic), Palm, Christine, Maria P. Horn (Democratic), Martin M. Looney (Democratic), and Porter, Robyn A..
What is the current status of HB 5449?
This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 5449?
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