SB114: relative to licensed acute care hospitals.

SB 114-FN – AS INTRODUCED

2007 SESSION

07-1249

01/10

SENATE BILL 114-FN

AN ACT relative to licensed acute care hospitals.

SPONSORS: Sen. DeVries, Dist 18; Sen. D'Allesandro, Dist 20; Sen. Roberge, Dist 9; Rep. Martin, Carr 5; Rep. Donovan, Sull 4; Rep. MacKay, Merr 11; Rep. P. Katsakiores, Rock 5; Rep. Emerton, Hills 7

COMMITTEE: Health and Human Services

ANALYSIS

This bill adds an exemption to the certificate of need law for the conversion of a licensed ambulatory surgical center or outpatient facility to a licensed specialty hospital in certain circumstances.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-1249 01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to licensed acute care hospitals.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Subparagraph; Certificate of Need; Exemption Added. Amend RSA 151-C:13 by inserting after subparagraph (h) the following new subparagraph:

(i) The conversion of a licensed ambulatory surgical center or outpatient facility to a licensed hospital focusing on surgical or other specialty services where:

(1) The ambulatory surgical center or outpatient facility is owned in whole or in part by an existing licensed acute care hospital;

(2) The existing licensed acute care hospital transfers or converts no more than 10 licensed inpatient beds to the converted hospital; and

(3) The converted hospital is located within the hospital service area of the existing licensed acute care hospital.

2 Effective Date. This act shall take effect January 1, 2008.

LBAO

07-1249

01/31/07

SB 114-FN - FISCAL NOTE

AN ACT relative to licensed acute care hospitals.

FISCAL IMPACT:

The Department of Health and Human Services states this bill may increase state revenue and expenditures by an indeterminable amount in FY 2008 and each year thereafter. This bill will have no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

The Department of Health and Human Services states this bill would result in the conversion of an unknown number of existing ambulatory surgical centers or outpatient facilities to a “licensed hospital focusing on surgical or other specialty services.” Department staff would be responsible for issuing such licenses which would result in an indeterminate cost created by the additional work associated with the licensing process. Unknown variables include the number of facilities that would be licensed, the physical plant of existing ambulatory surgical centers and outpatient facilities relative to the State Fire Code and other requirements for a licensed hospital, and whether a new category of licensure with administrative rules would be required. The Department states in FY 2006, hospital owned ambulatory surgical centers served approximately 950 Medicaid patients resulting in $365,000 in Medicaid payments. For facility costs only, Medicaid currently pays hospital outpatient departments approximately twice as much as ambulatory surgical centers to treat similar cases. The Department estimates Medicaid payments could increase by $325,000 to $467,000 annually based on average per case facility costs. The Department is unable to determine the exact fiscal impact at this time.