HB 843 – Certificate of Need Modifications

Primary House Sponsors: Rep. Harry Warren (R-Rowan); Rep. Keith Kidwell (R-Beaufort, Craven); Rep. William Richardson (D-Cumberland); Rep. Wayne Sasser (R-Cabarrus, Rowan, Stanly)





This bill:

  • Modifies a series of defined terms.
  • Exempts from certificate of need review a new institutional health service if DHHS receives prior written notice from the entity stating that the new service is required to develop, acquire, construct, expand, or release a health service facility or service that obtained certificate of need approval prior to January 1, 2022 as an ambulatory surgical facility.
  • Exempts from certificate of need review a capital expenditure that exceeds $4M if certain specified conditions are met.
  • Exempts from certificate of need review services or facilities for which a certificate of need has already been issued when those services or facilities are replaced, renovated, or relocated to another site in the same county where need was originally determined.
  • Exempts from certificate of need review the construction, development, acquisition, or establishment of an ambulatory surgical facility in a county with a population of 100K or more if certain specified conditions are met.
  • Specifies when a certificate of need for the construction of a health service facility expires if the holder of the certificate of need fails to initiate construction of the project within specified time frames.
  • Prohibits DHHS from issuing or renewing a license to operate an ambulatory surgical facility developed, acquired, or replaced on or after January 1, 2022 unless the license application includes (1) a commitment that the Medicare allowable amount for self-pay and Medicaid surgical cases minus all revenue collected from self-pay and Medicaid surgical cases will be equal to either 4% of the total revenue collected for all surgical cases performed in the facility/proposed facility or the percentage of charity care ambulatory surgery services provided by the affiliated hospital, whichever is greater; (2) a commitment to report total number of cases for certain specified payer categories for each year of operation; and (3) a commitment to report utilization and payment data for services provided by the facility to the statewide data processor.



Filed – 5/4/2021