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Committee hears details of CON phase‑out and new licensure verification for NICUs, burn units and imaging

House Finance, Ways, and Means Committee · February 10, 2026
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Summary

Health Facilities Commission staff told lawmakers that a phased Certificate of Need (CON) phase‑out will convert services such as NICUs, burn units and MRI/PET to licensure with new accreditation and reverification requirements (NICUs every three years; MRI/PET accreditation within two years; burn units within five years).

During questioning about CON reform, agency officials said the first phase of services — NICUs, burn units and MRI/PET — have begun conversion and will be subject to new licensure verification processes. "MRI and PET machines will be required to be accredited within 2 years of licensure. Burn units will be required to be accredited within the first 5 years of initial provisional licensures, and NICUs will be required to go through a reverification process every 3 years," Director Grant said, summarizing technical advisory group recommendations that informed the phased approach.

Lawmakers pressed for detail on how provisional licensure works and what happens if reverification does not occur within three years. Grant said providers may operate under provisional licenses pending independent reverification; failure to reverify could lead to suspension or other commission action. Committee members asked the agency to provide further documentation on the reverification process, staffing needs for inspections and the timeline for remaining phase‑outs (next phase planned for 12/01/2027).