Senate Bill 1040 repeals North Carolina’s certificate of need (CON) requirements for two categories of health care services: ambulatory surgical facilities and inpatient rehabilitation services, facilities, and beds. It also updates multiple statutory definitions tied to CON regulation, removes obsolete references to behavioral health facilities that are no longer subject to CON review, and revises related provisions governing new institutional health services and ambulatory surgical facilities.
The bill further directs the Department of Health and Human Services, Division of Health Service Regulation, to use a $50,000 appropriation to implement these changes and to develop a broader plan for the phased elimination of the state’s remaining CON laws. That plan must propose a three-year phaseout and recommend a timeline for removing CON requirements from additional health services and facilities, with a report due by July 1, 2027. The act becomes effective July 1, 2026.
Impact
If enacted, the bill would materially narrow North Carolina’s CON regime by eliminating state review for the establishment or expansion of ambulatory surgical facilities and inpatient rehabilitation services, facilities, and beds. It would also amend and repeal several statutes in Chapter 131E to conform definitions and remove provisions that are no longer needed, while preserving CON rules for other health care sectors unless and until they are phased out later. The bill affects DHHS, health service providers, hospitals, rehabilitation facilities, ambulatory surgery centers, and related licensing and planning processes.
Sentiment
The available context shows no recorded committee transcript or vote history, so there is no direct evidence of debate or formal opposition in the materials provided. Based on the bill’s structure and title, the measure appears to be a deregulatory health care reform proposal aimed at reducing barriers to facility development and expansion. The inclusion of an appropriation and a mandated phaseout plan suggests an intent to move deliberately rather than immediately dismantle the entire CON framework.
Contention
The main policy contention likely concerns the role of certificate of need regulation itself. Supporters would likely favor increased competition, easier access to ambulatory surgery and inpatient rehabilitation services, and reduced administrative barriers, while opponents may argue that CON laws help control costs, prevent overbuilding, and protect access in underserved areas. A specific point of tension is the bill’s directive to phase out the remaining CON laws over three years, which could raise concerns among existing providers, regulators, and stakeholders about market disruption and the future of health facility planning.