Senate Bill 82 Alabama 2026 Session

Summary

Primary Sponsor

Larry StuttsSenator

Republican

Session

2026 Regular Session

Title

Certificate of need; to remove requirement for new or expanded health care facilities and services in rural area

Summary

SB82 would end the certificate-of-need requirement for new or expanded rural health care facilities and services in Alabama while keeping planning reports and updating definitions.

What This Bill Does

Eliminates the certificate-of-need requirement for any proposed new or expanded health care facility or service located in a rural area. Rural health care providers would still submit reports to the State Health Planning and Development Agency (SHPDA). The bill updates definitions, removes duplicative language, and creates exemptions for certain equipment replacements, modernization on existing campuses, and specific bed-capacity changes; it also introduces a digital hospital concept under strict conditions. It preserves CON review for non-rural projects, maintains the existing fee structure with adjustments, and includes an expiration sunset for some provisions with an effective date of October 1, 2026.

Who It Affects

• Rural health care providers and rural residents: they would no longer need CON to build or expand facilities or services in rural areas, which could speed up projects, but would still have to file health care reports with SHPDA and remain subject to state planning rules.
• Non-rural providers and the state health planning framework: CON would still apply to projects outside rural areas; the SHPDA and Statewide Health Coordinating Council would continue to oversee planning, and fees and reporting requirements would remain in place for non-rural activities.

Key Provisions

• Eliminates the certificate-of-need requirement for new or expanded health care facilities and services located in rural areas.
• Rural health care providers must continue to submit health care reports to the State Health Planning and Development Agency (SHPDA).
• Defines and refines terms such as 'rural area' and 'rural hospital/provider'; repeals outdated or duplicative language and aligns code language to current style.
• Repeals Section 22-21-278 (exemption for kidney disease treatment centers) and adjusts related supplier and planning provisions.
• Keeps and adjusts the CON fee framework for non-rural projects (including application fees, reviewability fees, and surcharges) and funds administration through a dedicated account; introduces online filing system requirements.
• Creates exemptions for certain capital expenditures and equipment replacements that do not change services, as well as modernization on existing campuses that do not enable new institutional health services.
• Introduces a 'digital hospital' replacement concept with detailed requirements (fully automated digital systems, integrated medical records, etc.), including cost thresholds and a phased regulatory approach.
• Contains a sunset/expiration clause for certain rural CON-related provisions (December 31, 2005) unless extended by future legislation; effective date is October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Authorities, Boards, & Commissions