Healthcare

SB 177 expands North Carolina's Medicaid Healthcare Access and Stabilization Program (HASP) to include qualifying freestanding psychiatric hospitals, allowing them to receive increased reimbursements for services. The bill creates a new assessment (a fee) on these hospitals, calculated as a percentage of their hospital costs, to fund the program. To implement this, the state must seek federal approval from CMS to include psychiatric hospitals in HASP. This change directly affects all Medicare-certified, state-licensed freestanding psychiatric hospitals in North Carolina, requiring them to pay the new assessment while gaining eligibility for enhanced Medicaid payments.

This bill proposes to repeal North Carolina's Certificate of Need (CON) laws, which currently require healthcare providers to obtain state approval for certain projects. These projects include building new facilities, expanding existing services, or acquiring major medical equipment. By eliminating these requirements, the bill would remove a regulatory step for various healthcare facilities, such as hospitals, nursing homes, and diagnostic centers, looking to establish or grow their operations. The bill achieves this by amending several state statutes to remove references to the Certificate of Need process.