MD HB1597

Establishes a 3-year pilot project (July 1, 2026 through June 30, 2029) allowing up to 5 hospitals to operate unregulated operating room space within their regulated facilities, administered by the Health Services Cost Review Commission.

Participating hospitals may be exempt from standard rate regulation for the unregulated operating room space and must make these services available to all patients and payers without duplicating services in regulated space.

Requires participating hospitals to offer charity care consistent with regulated services, charge no more than their regulated rates for similar services, and provide lower costs to Medicaid and Medicare than comparable regulated hospital services.

Mandates annual reports to the Senate Finance Committee and House Health Committee by December 1 on procedure types and outcomes, participation costs, and effects on Maryland's AHEAD (Achieving Healthcare Efficiency through Accountable Design) Model.

Requires ambulatory surgical centers associated with participating hospitals and freestanding surgical centers in participating hospital areas to provide information to the Commission for reporting purposes.