Georgia Senate Approves Health Permit Relaxation Bill

On Mar 21, 2024

TL/DR –

Georgia lawmakers have agreed on a plan to ease some aspects of the state’s health care permitting law, allowing the Morehouse School of Medicine to open a central Atlanta hospital and another to open in any rural county where a hospital has been closed for over 12 months. The bill would also allow outpatient birthing centers to open without permits and would let new hospitals be built in counties with less than 50,000 residents, provided they agree to certain requirements. The legislation will now be sent to Governor Brian Kemp for approval or veto.

Georgia Lawmakers to Relax Health Care Permitting Law

Georgia lawmakers have reached an agreement to ease sections of the state’s health care permitting law. They gave final approval to House Bill 1339, which is now awaiting Gov. Brian Kemp’s signature or veto.

The bill’s provisions would enable the historically Black Morehouse School of Medicine to establish a hospital in central Atlanta. This facility could take over services previously provided by the now-closed Atlanta Medical Center. Also, a hospital could be opened without a permit in any rural county where a hospital has been closed for over a year. This adjustment could potentially allow the reopening of a southwest Georgia hospital in Cuthbert that was closed in 2020.

Georgia’s certificate of need regulations, which have been in place since the 1970s, necessitate proof of necessity for health facility expansion. These permits function to prevent overspending and subsequently escalating health care costs. Advocates for reform, like Lt. Gov. Burt Jones, argue that these laws have long acted as a barrier to quality health care expansion.

Despite the House rejecting some Senate proposals, such as permitting outpatient surgery centers and new imaging centers to operate without a permit, they did agree to allow outpatient birthing centers to open without permits. The bill also stipulates that new hospitals can be built in counties with less than 50,000 residents, given they commit to providing a set amount of charity care, joining the statewide trauma system, and offering psychiatric services.

The bill would also eliminate the dollar caps on expenditure for existing hospitals regarding buildings or equipment, as long as no new services are being offered. Furthermore, it simplifies the process of transferring beds between campuses or relocating the hospital.

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