SB 462 – CON/Threshold Amendments & Certificate Expirations

Primary Senate Sponsors: Sen. Joyce Krawiec (R-Davie, Forsyth); Sen. Jim Perry (R-Lenoir, Wayne); Sen. Jim Burgin (R-Harnett, Johnston, Lee)

Summary

This bill revises several defined terms applicable to certificate of need laws as follows:

  • Adjusts the threshold criteria for “diagnostic center” to include a facility, program, or provider in which the total cost of all medical diagnostic equipment used by the facility which cost more than $10K exceeds $1.5M
  • Adjusts the threshold criteria for “major medical equipment” to include a unit or system used to provide medical or other health services which cost more than $2M.
  • Adjusts the threshold criteria for “new institutional services” to include the obligation of capital expenditure exceeding $4M to develop or expand a health service/facility or relates to the provision of health services.
  • Requires the cost threshold amount for all three terms to be adjusted annually beginning September 30, 2022.
  • Sets timeline for when a certificate of need issued for the construction of a health service facility will expire if the holder of the certificate of need fails to initiation construction of the project.

Movement

Filed – 4/1/2021