Bill > HB1597

This bill establishes a pilot project to create "unregulated space" within hospital operating suites, meaning certain areas of the operating room might not be subject to the same regulations as others. The Health Services Cost Review Commission, an agency that reviews healthcare costs, will manage this project and set specific rules and standards for participating hospitals, of which there can be up to five. These hospitals may be allowed to use alternative payment methods, potentially exempting them from standard rates, and can offer this unregulated space to all patients and payers as long as services aren't duplicated in regulated areas. To participate, hospitals must provide charity care, ensure billed charges aren't higher than for similar regulated services, aim for lower costs for programs like Medical Assistance and Medicare, and educate the public about the differences and potential extra physician charges associated with unregulated services. The Commission will report annually to legislative committees on the types of procedures performed in these spaces, their outcomes, associated costs, and the project's impact on healthcare efficiency models. Additionally, ambulatory surgical centers and freestanding surgical centers in the vicinity of participating hospitals must provide the Commission with necessary information for its report. This pilot project is set to begin on July 1, 2026, and will last for three years.

Government Affairs

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1597?ys=2026RS