HB247 Alabama 2024 Session

Summary

Primary Sponsor

Ben HarrisonRepresentative

Republican

Session

Regular Session 2024

Title

Health care facilities and services, abolishing the certificate of need program

Summary

HB247 would abolish the certificate of need program and the state agencies that support it, shifting health facility oversight to new authorities and university affiliates.

What This Bill Does

It repeals the certificate of need program and abolishes the CN Review Board, the State Health Planning and Development Agency, the Statewide Health Coordinating Council, and the Health Care Information and Data Advisory Council. It updates the Code to remove references to these entities and makes only minor, technical wording changes. It allows transfer of health care facilities, assets, and certificates of need to an authority or a university affiliate, and it creates a process for counties to designate authorities to acquire and operate public hospital facilities. It creates a process for reincorporation of public hospital corporations as authorities with transfer of assets, permits, licenses, and CN-related rights, and it directs that funds associated with abolished entities revert to the State General Fund, with an effective date of October 1, 2024.

Who It Affects

• Health care facilities and providers currently required to obtain a certificate of need; they would no longer need CN for construction or service changes (subject to other references in 31-5A-11).
• State agencies and boards that administer or support the CN program (CN Review Board, State Health Planning and Development Agency, Statewide Health Coordinating Council, Health Care Information and Data Advisory Council); their duties would be abolished and their funds would revert to the State General Fund.
• Public hospital corporations, universities, and their affiliates; they could become or be designated as authorities to own, operate, or construct public hospital facilities, receiving related assets and rights
• Local governments (municipalities and counties) and educational institutions that own or operate health facilities; they could transfer facilities, property, and related funds to an authority or university affiliate.
• Nursing homes and certain privately-owned health providers described in 31-5A-11; these would remain subject to the certificate of need process and related review procedures as stated in the bill.

Key Provisions

• Repeals the Certificate of Need Program and abolishes the Certificate of Need Review Board, the State Health Planning and Development Agency, the Statewide Health Coordinating Council, and the Health Care Information and Data Advisory Council; funds related to these entities revert to the State General Fund.
• Allows transfer or conveyance of health care facilities, real/personal property, funds, assets, and rights including certificates of need and related permits to an authority or university affiliate; authorizes pledge of funds to such entities.
• Authorizes counties to designate an authority to acquire, construct, equip, operate, and maintain public hospital facilities within the county and to receive related tax proceeds.
• Creates a framework for reincorporation of qualifying public hospital corporations as authorities, including board resolutions, university approvals, and state review; if approved, the authority gains all powers and transfers assets, liabilities, certificates of need, permits, licenses, and government approvals from the reincorporated entity.
• Transfers and consolidates related certificates of need, permits, licenses, and governmental approvals to the new authority upon reincorporation, and ensures continuity of rights and obligations for creditors.
• Section 2 repeals Article 1 (State Health Planning and Development Agency), Article 2 (Alabama Health Planning Facilitation Act), and Article 9 (review of certain health facilities and services); Section 3-6 abolish the CN-related bodies with funds reverting to the General Fund; Section 7 sets an effective date of October 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Authorities, Boards, & Commissions