IA HF919

Defines "children's specialty hospital" as a nonprofit hospital serving patients 30 and younger, with more than 60% on Medicaid, specializing in pediatric rehabilitation and behavioral health, with no more than 200 inpatient beds, and that previously qualified as a special population nursing facility before July 1, 2025

Requires the Department of Inspections, Appeals, and Licensing to grant provisional children's specialty hospital licenses within 30 days to qualifying entities, valid for up to 24 months, allowing them to seek federal certification and reimbursement program participation

Authorizes reasonable waivers from state hospital rules for licensed entities, including exemptions from laboratory/pathology service requirements and emergency service requirements beyond what they previously provided

Allows licensed entities to operate under existing nursing facility physical standards (481 IAC 61) and exempts them from hospital construction standards, including Facility Guidelines Institute requirements

Sets Medicaid reimbursement rates based on prospective per diem costs for inpatient care and cost-to-charge ratios for outpatient care, and exempts licensed entities from certificate of need requirements when converting to or from children's specialty hospital status