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Hospitals warn federal law complicates blanket requirement to allow medical cannabis on premises
Summary
Utah Hospital Association representatives told a legislative working group that federal statutes and Medicare/Medicaid conditions of participation make institutions cautious about mandating medical cannabis use in hospitals; patient advocates and licensed operators described limited, existing accommodations and models like California's Ryan’s Law.
Representatives of Utah’s hospital community told the state medical cannabis working group that hospitals are reluctant to adopt a mandatory policy allowing medical cannabis use on their premises because marijuana remains a Schedule I substance under federal law and hospitals rely heavily on Medicare and Medicaid reimbursements.
Dave Gessel, executive vice president of the Utah Hospital Association, said hospitals face a legal dilemma: federal law still classifies marijuana as illegal, while hospitals operate under strict Centers for Medicare & Medicaid Services (CMS) "conditions of participation" that, if violated, could risk a hospital’s ability to receive federal payments. "The condition of participation tells us we have to follow every law and regulation," Gessel said. "Until there's more guidance from the federal government in this space, it will be difficult for hospitals to do this broadly."
Gessel and other speakers said some institutions may accommodate individual patients, but a state law that mandates hospitals permit medical cannabis use — even with a fallback that allows facilities to opt out if federal enforcement occurs — would not fully eliminate legal risk for institutions.
Patient advocates and licensed cannabis industry representatives described alternative approaches in other states and operational practices in Utah. Justin Areola, a licensed owner in Utah, summarized key elements of California’s 2021 Ryan's Law — a narrowly targeted statute that allows certain medical cannabis use for terminal patients with limits (e.g., bans on smoking or vaping, self‑administration by the patient, and safe‑harbor exit clauses for facilities) — and noted Oregon and Rhode Island were implementing similar measures.
Desiree Hennessy of the Utah Patients Coalition said patients report inconsistent treatment across facilities: some hospitals seek to document and support use on a case‑by‑case basis, while others refuse. Senator and committee members asked staff to collect additional experience from states that have enacted laws permitting medical cannabis use in certain facilities and to explore the federal enforcement record, though staff said conclusive federal guidance was not readily available.
Ending: The committee did not vote on this item. Members asked staff to research state precedents and any documented federal responses to facility‑level medical cannabis laws and to report back.
