The Mississippi Legislature on Wednesday sent House Bill 1622 to Republican Gov. Tate Reeves, creating a pilot program that would temporarily ease state approval requirements for about 55 rural hospitals through June 2027, according to the bill.
Under the measure, hospitals would not need prior state approval for certain projects that otherwise trigger certificate of need reviews. Current thresholds require approval for nonclinical improvements over $20 million, clinical improvements over $10 million and major medical equipment purchases over $3 million, the bill says. Hospitals in small communities would be allowed to open one new facility within five miles of their main campuses or complete an improvement above the thresholds; hospitals in the Mississippi Delta would be allowed two exemptions. The bill also would let facilities open geriatric psychiatric units without first seeking approval.
The legislation includes a “loser pays” provision that would require any party appealing the state’s approval of a new facility or improvement to pay the applicant’s legal fees if the ruling is not overturned, the bill states. It also would remove Humphreys and Issaquena counties from certificate of need requirements and give the state health officer authority to license eight dialysis facilities across the state.
Sen. Hob Bryan, D-Amory, chairman of the Senate Public Health and Welfare Committee, told Mississippi Today on March 5 that he had been cautious about changing the state’s certificate of need law but supported a pilot program to test whether loosening restrictions could help rural hospitals. “I know for sure there are going to be unintended consequences,” Bryan said. House Public Health and Human Services Chairman Sam Creekmore, R-New Albany, told Mississippi Today he drafted the bill to give rural hospitals more flexibility, “hopefully making them more profitable, and providing better health care services at the same time.”
The bill would take effect immediately if Reeves signs it or allows it to become law without his signature. Mississippi Today reported that the changes come amid concern about rural hospital viability in the state. Lawmakers have proposed other changes this session: Reeves signed a separate bill Feb. 4 easing some approval requirements and limiting where the University of Mississippi Medical Center can open locations without state approval, and another measure to ease rural hospital openings passed the House March 10 and was returned to the Senate, Mississippi Today reported.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
