Rhode Island 2025 Regular Session

Rhode Island House Bill H5355

Introduced
2/7/25  

Caption

Repeals the certificate of need process statutes which are used by the department of health to determine the need for new health care equipment and new institutional health services.

Summary

This bill repeals Rhode Island’s entire chapter governing the “Determination of Need” process, also known as the state’s certificate of need (CON) law, for new healthcare equipment and new institutional health services. Under current law, hospitals, healthcare facilities, and certain providers must obtain prior review and approval from the Department of Health and the Health Services Council before developing or offering specified high-cost equipment or services, expanding beds, or undertaking certain capital projects. The bill would eliminate that review framework in full. As drafted, the repeal would remove the statutory definitions, review criteria, application procedures, expedited review process, fee structure, public reporting requirements, and enforcement provisions tied to CON approval. It would also end the existing limits on reimbursement or state funding for unapproved projects, along with the related sanctions for proceeding without approval. The bill takes effect immediately upon passage, so its practical effect would be to open the door to new healthcare capital projects and service expansions without the current state-level need determination process unless another law separately requires review. The bill’s impact on state law is broad because it strikes an entire regulatory chapter rather than making targeted amendments. That means the Department of Health would lose its statutory authority to evaluate whether proposed healthcare investments are needed, affordable, or consistent with state health planning under chapter 23-15. Healthcare facilities, providers, insurers, and state agencies that currently participate in or rely on the CON process would no longer be bound by those procedures for covered projects. The general sentiment reflected in the bill materials is limited because there were no committee transcripts or recorded votes provided. However, the bill’s sponsors and caption indicate a deregulatory approach aimed at repealing the CON system altogether. In the absence of recorded debate, the bill can be characterized as a proposal to reduce state oversight of healthcare expansion and equipment acquisition. The main point of contention likely concerns the policy tradeoff between reducing regulatory barriers and preserving state control over healthcare costs, duplication of services, and planning. Supporters of repeal would likely argue that the CON process delays projects and restricts competition, while opponents would likely argue that it helps prevent unnecessary spending, protects access and affordability, and allows the state to manage healthcare capacity. Because no transcripts or votes are available, no specific legislator or stakeholder positions are documented in the provided materials.

Impact

Repealing chapter 23-15 would remove Rhode Island’s certificate of need regime for new healthcare equipment and new institutional health services, eliminating the Department of Health’s statutory review and approval authority over covered projects. This would affect hospitals, nursing facilities, ambulatory surgery centers, hospice providers, and other healthcare facilities subject to the current law, as well as state agencies and insurers that currently use CON approval as a condition for reimbursement, contracting, or funding decisions. The bill would also nullify the associated application fees, public notice and hearing requirements, cost-impact analyses, and enforcement sanctions tied to unapproved development.

Sentiment

No committee transcripts or vote history were provided, so there is no recorded debate or roll-call evidence of support or opposition in the materials. Based on the bill text and caption, the measure appears to be a deregulatory repeal of the certificate of need process, suggesting a policy preference for reducing state oversight of healthcare capital projects and service expansion. Because the available record is limited, the overall sentiment can only be described as a proposal to substantially change the current regulatory framework rather than a bill with documented bipartisan or partisan reaction.

Contention

The central policy dispute is likely whether Rhode Island should continue using certificate of need review to control healthcare expansion, costs, and duplication of services, or whether that process unnecessarily delays investment and limits competition. Supporters of repeal would likely favor faster market entry, fewer administrative burdens, and more provider flexibility. Opponents would likely emphasize the CON law’s role in state health planning, affordability review, and preventing overbuilding or inefficient duplication of services. No specific stakeholder testimony, committee objections, or recorded votes were provided, so the contention can only be inferred from the subject matter.

Companion Bills

No companion bills found.

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