Committee expedites certificate-of-need process for certain substance-use treatment facilities

The Health and Government Operations Committee on Thursday unanimously approved House Bill 1515, a measure to create an expedited certificate-of-need (CON) process for intermediate care facilities that offer medically managed residential substance-use disorder treatment.

The bill requires a facility that intends to establish, operate or change bed capacity to file written notice with the Maryland Health Care Commission at least 45 days in advance and authorizes the commission to find the proposed facility or change is not inconsistent with the State Health Plan, will result in more efficient and effective health care services and is in the public interest.

Committee Vice Chair Collison, who moved the bill, said the change was requested by the Maryland Health Care Commission (MHCC) and is intended to “expedite their procedures” for intermediate care facilities serving people with substance-use disorders. “They are simply looking at that facility individually in terms of the need,” Collison said, adding the process removes interested third parties or potential competitors from the review.

Supporters described the measure as an “expedited” alternative to the current CON process rather than a full removal of CON requirements. “Right now all the facility has to do is say we’re going to add 50 beds to our facility. With this bill they will have to say we would like to add 50 beds to our facility, can we talk to you about this and how this would work and how we have the capacity to do this,” Collison said.

Delegate Delia Johnson asked whether intermediate care facilities were currently subject to the CON process; a committee staff member confirmed they are and that the bill replaces the full CON review for these facilities with the expedited process described in the legislation.

The committee chair put the question and, after no opposition was raised, the bill passed on a voice vote. No formal roll-call tally was recorded in the transcript.

What the bill changes

- Requires written notice to MHCC at least 45 days before establishing, operating or changing bed capacity for intermediate care facilities that provide medically managed residential substance-use disorder treatment. - Removes interested third parties/competitors from the expedited review for these facilities so MHCC evaluates the proposal on its own merits. - Maintains MHCC’s substantive review standards (consistency with the State Health Plan, efficiency/effectiveness, public interest) while shortening timeframes.

Next steps

The committee record shows the bill was moved, seconded and approved unanimously in committee. The transcript indicates the sponsor took the measure on a favorable vote; no amendments or conditions were recorded during the committee’s action.

Ending: The committee moved on to other voting items after approving HB 1515.