HB 1597

HOUSE BILL 1597
     J3  6lr3617
     By: Delegate Hill
     Introduced and read first time: February 16, 2026
     Assigned to: Rules and Executive Nominations
  A BILL ENTITLED
1 AN ACT concerning
2      Health – Unregulated Space in Hospital Operating Suites – Pilot Project
3 FOR the purpose of establishing an unregulated space in hospital operating suites pilot
4      project; requiring the Health Services Cost Review Commission to administer the
5      pilot project; requiring the Commission to develop certain criteria and standards for
6      the pilot project; requiring certain ambulatory surgical centers and freestanding
7      surgical centers to provide the Commission with certain information; and generally
8      relating to the unregulated space in hospital operating suites pilot project.
9 BY adding to
10      Article – Health – General
11      Section 19–209
12      Annotated Code of Maryland
13      (2023 Replacement Volume and 2025 Supplement)
14SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
15 That the Laws of Maryland read as follows:
16Article – Health – General
17 19–209.
18(A)THERE IS AN UNREGULATED SPACE IN HOSPITAL OPERATING SUITES
19 PILOT PROJECT.
20(B)     THE PILOT PROJECT SHALL BE ADMINISTERED BY THE COMMISSION.
21(C)     (1)
  THE COMMISSION IS AUTHORIZED TO ALLOW UP TO FIVE
22 HOSPITALS TO PARTICIPATE IN THE PILOT PROJECT.
     EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
  [Brackets] indicate matter deleted from existing law.
  *hb1597*
2HOUSE BILL 1597
1(2) A HOSPITAL PARTICIPATING IN THE PILOT PROJECT MAY BE
2 SUBJECT TO AN ALTERNATE METHOD OF RATE DETERMINATION, INCLUDING AN
3 EXEMPTION FROM RATES THAT ALLOWS UNREGULATED OPERATING ROOM SPACE
4 TO BE PHYSICALLY LOCATED WITHIN A REGULATED FACILITY.
5(3)   A HOSPITAL PARTICIPATING IN THE PILOT PROJECT IS
6 AUTHORIZED TO MAKE AVAILABLE UNREGULATED OPERATING ROOM SPACE TO ALL
7 PATIENTS AND ALL PAYERS, WITH NO DUPLICATION OF SERVICES IN REGULATED
8 OPERATING ROOM SPACE.
9      (D)  THE COMMISSION SHALL DEVELOP CRITERIA AND STANDARDS FOR
10 HOSPITALS PARTICIPATING IN THE PILOT PROJECT, INCLUDING THAT:
11(1) A PARTICIPATING HOSPITAL SHALL OFFER CHARITY CARE
12 CONSISTENT WITH REGULATED HOSPITAL SERVICES;
13(2) THE BILLED CHARGE FOR A SERVICE MAY NOT BE HIGHER THAN
14 THE PARTICIPATING HOSPITAL’S BILLED CHARGE FOR A SIMILAR SERVICE;
15(3)THE COST TO THE MEDICAL ASSISTANCE PROGRAM AND
16 MEDICARE SHALL BE LOWER THAN A SIMILAR REGULATED HOSPITAL SERVICE; AND
17(4) A PARTICIPATING HOSPITAL SHALL INCREASE CONSUMER
18 AWARENESS AND EDUCATION ABOUT REGULATED AND NONREGULATED SERVICES,
19 INCLUDING THE POTENTIAL FOR ADDITIONAL BILLED CHARGES FROM PHYSICIANS.
20      (E)   (1) ON OR BEFORE DECEMBER 1 EACH YEAR, THE COMMISSION
21 SHALL REPORT, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
22 ARTICLE, TO THE SENATE FINANCE COMMITTEE AND THE HOUSE HEALTH
23 COMMITTEE ON:
24(I)   1. THE TYPES OF PROCEDURES THAT HAVE OCCURRED
25 IN A PARTICIPATING HOSPITAL’S UNREGULATED OPERATING ROOM SPACE; AND
262.   WHETHER THE OUTCOME OF THOSE PROCEDURES
27 INDICATES THAT THEY WERE APPROPRIATELY PERFORMED IN UNREGULATED
28 OPERATING ROOM SPACE;
29(II) THE    COSTS    ASSOCIATED   WITH   A   HOSPITAL’S
30 PARTICIPATION IN THE PILOT PROJECT; AND
  HOUSE BILL 1597  3
1(III) THE EFFECTS OF THE PILOT PROJECT ON THE STATE’S
2 ACHIEVING HEALTHCARE EFFICIENCY THROUGH ACCOUNTABLE DESIGN
3 (AHEAD) MODEL.
4(2)   EACH AMBULATORY SURGICAL CENTER ASSOCIATED WITH A
5 PARTICIPATING HOSPITAL AND FREESTANDING SURGICAL CENTER IN A
6 PARTICIPATING HOSPITAL’S AREA SHALL PROVIDE THE COMMISSION WITH
7 INFORMATION DETERMINED NECESSARY BY THE COMMISSION TO COMPLETE THE
8 REPORT REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION.
9SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
10 1, 2026. It shall remain effective for a period of 3 years and, at the end of June 30, 2029,
11 this Act, with no further action required by the General Assembly, shall be abrogated and
12 of no further force and effect.