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Committee clarifies insurer obligations for ambulatory surgery centers converted to temporary hospitals
Summary
The Senate Insurance & Commerce Committee advanced a bill clarifying that insurers must provide hospital‑level contracts when ambulatory surgical centers convert to temporary hospitals during public‑health emergencies.
The Senate Insurance & Commerce Committee advanced a bill sponsored by Sen. Missy Irvin clarifying insurer obligations when ambulatory surgical centers (ASCs) convert to temporary hospitals during public‑health emergencies. The sponsor said the measure would give the Arkansas Insurance Department clearer authority to enforce a law the legislature passed to allow certain ASCs to operate as temporary hospitals in emergencies.
Sen. Missy Irvin told the committee the legislature passed the original conversion law in 2021 and that two ASCs in Arkansas had converted under that authority. In testimony, Jason Hendren of law firm Hall Booth Smith explained that one insurer had declined to treat those temporary hospitals as hospitals for contracting and reimbursement purposes. "This bill makes it clear that they have no choice," Hendren said, arguing the change would make the department's enforcement authority explicit and make relief retroactive for the two ASCs that converted after the 2021 law and state executive orders.
The sponsor and presenters cited a governor’s executive order and federal actions by Medicare and Medicaid during COVID‑19 that created a pathway for temporary hospital reimbursement. Committee members asked whether the bill carried a fiscal impact for the state. Counsel and witnesses said it should not, and that the bill addresses private‑payer obligations.
The committee endorsed the bill by motion; the sponsor closed and made the formal motion for passage. The motion carried on a voice vote. The transcript does not record a roll‑call tally. The measure will be transmitted along the legislative process for further consideration.
Ending note: Sponsors presented the bill as a technical clarification intended to ensure private insurers comply with the legislature’s 2021 policy to allow ASCs to serve as temporary hospitals in emergencies. The committee advanced the bill with no recorded amendments or formal fiscal impact on state government.
