Substitute Bill No. 9 Summary

• Adds civil penalty authority of up to $25,000 for substantial non-compliance with hospital licensing requirements and establishes emergency department diversion procedures requiring hospital notice to the Department of Public Health before rerouting ambulances.

• Requires hospitals to submit quarterly financial reports to the Office of Health Strategy detailing unpaid vendor invoices over 90 days, cash on hand, operating margins, unpaid utilities, rent, and employee health insurance premiums, with civil penalties up to $10,000 per violation.

• Exempts transfers of ownership of large group practices and certain health care facilities from certificate of need (CON) requirements through December 31, 2025, if submitted as a determination request to the Health Systems Planning Unit.

• Requires post-transfer compliance reporting for 3 years when large hospitals or for-profit entities acquire hospitals with over $1.5 billion in fiscal year 2013 net patient revenue, including quarterly meetings with community representatives and public hearings.

• Modifies CON review criteria to require applicants demonstrate proposals will not negatively impact financial strength of regional health care systems and will not reduce services to Medicaid and Medicare recipients and indigent persons.