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House approves bill narrowing Certificate-of-Need rules for some health services amid fiscal warnings

2169163 · January 29, 2025
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Summary

The Mississippi House passed House Bill 922 to remove several categories from the state Certificate of Need (CON) process, raise capital-expenditure thresholds and streamline appeals. Supporters said the changes increase access and update data requirements; opponents warned of large, unspecified long-term Medicaid costs.

The Mississippi House of Representatives approved House Bill 922, a measure that removes several health services from the state’s Certificate of Need process, raises capital-expenditure thresholds for health projects and shortens the data window used in the state health plan. The bill passed by roll call, 107 ayes to 5 nays.

Proponents said HB 922 will streamline approvals and expand access to services that have outgrown the original reason for CON oversight. “It exempts chemical dependency services and facilities and intermediate care for psychiatric residential facilities from CON process,” the bill’s floor sponsor said, adding that hospital-based end‑stage renal disease (dialysis) facilities and MRI and certain invasive diagnostic imaging also will be exempt after a four‑year phase-in.

Supporters said the bill also raises the definition for capital expenditures: major medical equipment from $1.5 million to $3 million, clinical health services projects from $5 million to $10 million and nonclinical health services projects from $10 million to $20 million. The measure creates a special judicial appeal process for CON denials, with a judge appointed by the state Supreme Court to decide appeals within 120 days, and shortens the state health plan’s allowable data window from three years to 12 months.

The bill preserves CON for intermediate care facilities for individuals with intellectual disabilities (ICF/IID) and reallocates 100 of 400 beds then held in abeyance; the sponsor said 20 of those beds will go to Sun Valley immediately upon signature. The sponsor described other technical changes including clarifying birthing centers’ status and limiting how long a CON may remain viable without documented progress.

Several members raised fiscal concerns. One legislator warned that removing CON for brick‑and‑mortar facilities could increase Medicaid general‑fund costs over time and urged updating the state health plan before lifting CON rules. That speaker said forecasting the long‑term budget impact was not possible from the bill text and described the change as a potential “budget buster.” The transcript did not contain a formal fiscal‑note figure tied to the measure.

The House adopted HB 922 on final passage and sent it on to the next stage of the legislative process.