SENATOR ANWAR VOTES TO CREATE EXPEDITED CERTIFICATE OF NEED PROCESS FOR HOSPITALS EXPERIENCING BANKRUPTCY

Today, State Senator Saud Anwar (D-South Windsor) joined the State Senate to vote in favor of legislation creating an emergency Certificate of Need process, specifically addressing hospitals undergoing bankruptcy proceedings.

“Our medical systems are already under strain, and the uncertainty and delays that come with the extended, complicated Certificate of Need process don’t always reflect the best outcomes for patients, workers or building operations,” said Sen. Anwar. “This new, expedited process for hospitals undergoing bankruptcy – meaning there’s a ticking clock and a need for action – will much better reflect the need for urgency and swift action in these serious circumstances.”

The usual Certificate of Need process under current law has a number of potential delay periods; the Office of Health Strategy has 30 days to determine if an application is complete, then a 30-day public comment period, public hearing and further waiting period are required as well before further action can be taken.

The new Certificate of Need process would shorten many of those time frames; the period to determine applications being complete shrinks from 30 to 3 days, decision deadlines are cut in half and public hearings become optional. OHS would also be required to narrow its focus of considering an application to just the impacts of hospital bankruptcy on patients and communities it serves.

Advocates and lawmakers have called for changes to the Certificate of Need process to accommodate rapid changes that can impact hospital operations. Prospect Medical Holdings Inc., which owns Manchester Memorial Hospital, Rockville General Hospital and Waterbury Hospital, has seen delays in attempting to sell those properties partially due to the Certificate of Need process.

“Currently, the three hospitals operated by Prospect Medical employ 6,000 people and provide care to 500,000 residents in their coverage areas,” Sen. Anwar said. “Their viability is critical to their communities. This bill makes sure that when an appropriate buyer is identified to make an acquisition, they won’t be slowed by the Certificate of Need process.”

The Connecticut Mirror said that the median average time from application submission to final decision in certificate of need cases from 2018 to 2024 was 7.5 months.

The new emergency process also recognizes the seriousness of potential interruptions of hospital care by centralizing the Certificate of Need’s focus on the direct impacts of a hospital’s bankruptcy impacting patients and communities.