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Senate orders third reading of S.18 to license freestanding birth centers and exempt them from certificate-of-need
Summary
S.18, which would establish licensure for freestanding birth centers in Vermont, passed committee steps on March 25 and was ordered to third reading. Sponsors said licensure will expand care options, lower costs for some births and stem workforce loss to neighboring states.
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The Vermont Senate on March 25 adopted committee recommendations and ordered third reading of S.18, a bill to license freestanding birth centers in the state.
Senator Gulick of Chittenden, reporting for the Committee on Health and Welfare, explained that S.18 creates a licensure framework for freestanding birth centershealth-care facilities that provide childbirth services in a midwifery and wellness model but are not hospitals. Gulick said national medical organizations and the White House maternal-health blueprint endorse birth centers as a safe, evidence-based option for low-risk pregnant people and that neighboring states already allow them.
The bill sets a $250 initial and renewal application fee, requires Department of Health licensure consistent with board rules, sets inspection and records requirements, establishes an appeals and revocation process, and directs the Department of Health to adopt rules for licensure. S.18 also seeks an exemption from certificate-of-need requirements for birth centers to reduce a barrier to openings. The Appropriations Committee reported a nominal fee-based fiscal effect on licensing and noted that, over the long term, birth centers could lower Medicaid costs by providing lower-cost birth-site options.
Gulick cited Blue Cross Blue Shield data in committee indicating average costs: a vaginal birth at the University of Vermont Medical Center at $17,100 versus $2,870 at a freestanding birth center. The bill requires insurers to cover prenatal, maternity, postpartum and newborn services at licensed birth centers, including facility fees, and directs the Agency of Human Services to seek necessary federal approvals for plan amendments (Medicaid) where applicable.
Committee votes were unanimous in favor: Health and Welfare reported the measure favorably (5-0-0), Finance voted 7-0-0 on the fee and Appropriations reported support (7-0-0). The Senate amended as recommended by Health and Welfare and ordered third reading.
Ending: With unanimous committee support and the Appropriations report noting potential long-range Medicaid savings, S.18 moves to third reading; sponsors and advocates said licensure aims to expand options and retain midwifery workforce in Vermont.

