The Georgia Department of Community Health (“DCH”) recently announced its intent to revise the Georgia regulations governing the hospital permit requirement, specifically Ga. Comp. R. & Regs 111-8-40-.03. The proposed rule can be viewed on DCH’s website.1 Notable changes include an increase to the advanced notice to DCH required for a change of ownership or closure and the requirement that a new permit be obtained when a hospital merger occurs. Under the proposed rule, DCH will require 180 days prior written notice of the following:
- The addition or reduction of any services
- An asset sale (i.e., change of ownership)
- An anticipated closure
The 180-day advance notice requirement is a substantial change from the 30-day advance notice currently required for such actions. Failure to meet the notification deadline will lead to a $1,000 per day penalty, unless DCH waives or reduces the notification requirement for good cause.
In addition, the proposed rule requires a new hospital permit to be issued following the merger with another hospital. Under the current rule, a new hospital permit is only required if the hospital changes its location, name, ownership, classification, or capacity. The proposed rule also requires a hospital to submit a written request to DCH showing good cause to terminate its enrollment as a provider of medical assistance.
On March 9, 2023, the Board of Community Health will vote on the proposed rule.
[1] See https://dch.georgia.gov/document/document/amendment-hospital-permit-requirement-rules-111-8-40-03-initial-adoption-signed/download.
