SB151 Alabama 2013 Session

Updated Feb 25, 2026

Summary

Primary Sponsor: Tom Whatley
Republican
Co-Sponsor: Cam Ward
Session: Regular Session 2013
Title: Certificates of Need, health care facilities, transfer of ownership, includes legal entities, retro. effect, Secs. 22-21-260, 22-21-263, 22-21-270 am'd.
Summary: SB151 lets health care facilities and HMOs be owned by LLCs or other entities and updates retroactive CON rules for Alabama health care facilities and services.
What This Bill Does
It broadens ownership options for CON entities by allowing LLCs and other legal forms, with retroactive effect to July 30, 1979. It updates definitions and thresholds for capital expenditures and bed changes, clarifies when new institutional health services must go through CON review, and narrows when transfers of existing facilities trigger CON requirements. It changes CON validity and transfer rules (vesting, pre- and post-vesting transfers, and extension conditions) and requires SHPDA to implement rules, publish cost indices, and update the State Health Plan; the act becomes effective immediately after governor approval.

Who It Affects
Health care facilities and health maintenance organizations in Alabama, including owners, applicants, and potential buyers, by enabling ownership through LLCs/other entities and by modifying CON transfer and review rules.
State agencies and planning bodies (SHPDA and the Statewide Health Coordinating Council) that administer CON review, publish expenditure indices, and update the State Health Plan to reflect the new rules.

Key Provisions
Allows health care facilities and health maintenance organizations to be organized as limited liability companies and other legal entities for purposes related to certificates of need.
Retroactively applicable to July 30, 1979.
Sets detailed definitions and capital expenditure thresholds (e.g., major equipment > $2,000,000; new operating costs > $800,000; other capital > $4,000,000) indexed to CPI for CON determinations; defines terms like construction, bed capacity changes, and health services.
Subject to CON review new institutional health services; specifies that transfers of existing facilities or HMOs are not CON-required unless new institutional health services are involved.
Establishes CON validity of up to 12 months with an optional 12-month extension (fee up to 25% of original CON fee); termination if no obligation occurs within the valid period.
Pre- and post-vesting transfer rules for CONs, including disclosure of transfer agreements and limits on transfers to affiliated groups; post-vesting transfers within a controlled group are allowed under defined conditions.
SHRDA (SHPDA) may adopt rules on information filings related to transfers; CPI index information must be published for public access; the State Health Plan will be amended to remove references to lithotripters, MRI, and PET as required.
Act becomes effective immediately upon passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Health