The North Carolina House voted Aug. 24 to approve a bill that would make changes to the state's certificate-of-need laws.
Certificate-of-need laws require hospitals and medical providers to seek approval from state regulators to add services, medical equipment or beds. The goal of the law is to limit unnecessary services and increase competition.
The bill would allow medical providers to add more equipment and services before needing to undergo the certificate-of-need process by increasing the dollar threshold that must be exceeded. For example, for capital expenditures for new healthcare services, the threshold will rise to $4 million, up from $2 million. Additionally, for major medical equipment, the threshold would increase to $2 million, up from $750,000.
The new thresholds would adjust each year for inflation, beginning September 2022.
The bill also would require certificate-of-need holders to initiate construction projects within a specified time frame or lose the certificate. Projects costing $50 million or more would need to start within four years of the certificate becoming final.
The House passed the bill in a 100-3 vote. The bill now heads to the governor's desk to sign. The Senate passed the bill in May.