Mississippi lawmakers send bill to governor to ease rural hospital approval process
Mississippi lawmakers approved a bill Wednesday that would temporarily relax state approval rules for rural hospitals. The legislation seeks to help struggling facilities expand services and improve revenue by establishing a pilot program for about 55 hospitals statewide through June 2027, according to the bill’s sponsors.
The bill would loosen the state’s certificate of need laws, which require hospitals to prove the necessity of new services or costly upgrades before receiving approval. Currently, hospitals must seek approval for projects exceeding $20 million for nonclinical improvements, $10 million for clinical upgrades, and $3 million for major medical equipment. Under the new bill, small community hospitals could open one new facility within five miles of their main campus or make improvements above the thresholds. Facilities in the Mississippi Delta would be allowed two exemptions.
Additionally, hospitals would be permitted to open geriatric psychiatric units without prior approval. The legislation, which has garnered bipartisan support, now moves to Gov. Tate Reeves. If he signs the bill or allows it to become law without his signature, it will take effect immediately, the sponsors said.
Sen. Hob Bryan, a Democrat and chairman of the Senate Public Health and Welfare Committee, expressed cautious optimism about the bill. He noted that while he has been hesitant about changing the laws, a pilot program could reveal whether loosening restrictions benefits rural hospitals. Bryan said, “There are going to be unintended consequences, but I think the time has come to try something new.”
House Public Health and Human Services Chairman Sam Creekmore, a Republican, authored the legislation. He said it aims to provide rural hospitals with more flexibility to open new services and become more profitable, while also improving healthcare access. Critics of the current law argue it stifles competition and does not lower costs, but supporters contend it helps ensure communities retain access to essential services.
The bill also proposes to speed up the certificate of need process through a ‘loser pay’ provision, requiring appealing parties to cover legal fees if their challenge is unsuccessful. In addition, the legislation would exempt Humphreys and Issaquena counties from certificate of need requirements and give the state health officer authority to license eight dialysis facilities across the state.
This proposal is the second to modify Mississippi’s certificate of need law this session. Gov. Reeves recently signed a bill easing restrictions for hospital expansions and limiting the University of Mississippi Medical Center’s new location approvals. A similar measure for rural hospitals has also been approved by the House and sent back to the Senate for consideration.
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