Companion bills in the Maryland Senate and House propose removing an exception to the state’s certificate-of-need laws, according to a Feb. 23 article from law firm Baker Donelson.
Here are five things to know about Senate Bill 494 and House Bill 944:
- Under the bills, healthcare facility mergers would require a certificate-of-need or Maryland Health Care Commission approval. Previously, those mergers could qualify for an exemption.
- The bills propose requiring healthcare entities to provide a 90-day notice to the commission before completing any merger, acquisition or material transaction.
- “Healthcare entities” are defined as provider organizations, healthcare facilities and ASCs.
- Examples of transactions that would be subject to review include mergers involving one or more healthcare entities; acquisitions of healthcare entities; any affiliation, arrangement or contract that results in a change of control over a healthcare entity; the formation of partnerships, joint ventures and MSOs; a sale, purchase, lease or transfer of control of a board of directors; and a real estate transaction involving a material amount of healthcare entity assets.
- Following a public interest review, the commission’s executive director would have the power to approve, approve with conditions or deny the transaction.
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