Morgantown, WV – Although a bill to repeal West Virginia’s Certificate of Need (CON) process was rejected in February, some legislators are now proposing an exemption for micro-hospitals. However, the West Virginia Hospital Association (WVHA) and Mon Health oppose the new measure.
The House Health Committee recently held an informational hearing on House Bill 3487, which seeks to remove CON requirements for constructing or acquiring a small-format or micro-hospital—provided the facility is owned by a healthcare system that already operates licensed hospitals in the state.
Under the bill, the new hospital would need to expand healthcare access without threatening nearby critical access hospitals. It could have up to 25 inpatient beds, 25 emergency room beds, CT and MRI scanners, and other essential services, with a construction cost cap of $100 million.
Supporters Say the Bill Addresses Healthcare Gaps
Lead sponsor Del. Wayne Clark, R-Jefferson, said this marks the third consecutive year lawmakers have introduced the bill. He emphasized the shortage of hospital beds in the Eastern Panhandle, where WVU Medicine’s Jefferson Medical Center and Berkeley Medical Center serve a population of 250,000.
“Many of us who live in border communities have to go out of state for medical care,” Clark said, noting that residents frequently seek treatment in Maryland and Virginia. He believes the bill would expand healthcare access, attract more providers, and keep healthcare spending within West Virginia.
WVHA Opposes the Bill, Citing Financial and Regulatory Concerns
WVHA President and CEO Jim Kaufman expressed opposition, arguing that the bill could effectively eliminate the Certificate of Need process altogether.
Under a law passed two years ago, Kaufman explained, a company could build a micro-hospital and then expand it to a 1,000-bed facility without needing a CON.
Critical access hospitals, he noted, already provide 90% of their services on an outpatient basis and can expand without obtaining a Certificate of Need. However, they must navigate federal requirements tied to their Medicare and Medicaid reimbursements when increasing bed capacity.
Mon Health Weighs In on the Debate
David Goldberg, President and CEO of Mon Health System and Davis Health System, along with Executive Vice President of Vandalia Health, voiced concerns about bypassing the CON process.
“A small-format hospital—or micro-hospital—is still a fully licensed hospital, subject to CMS regulations, state rules, and life safety standards,” Goldberg said.
He cited Mon Health’s successful CON-approved projects, including Mon Marion Neighborhood Hospital and the soon-to-open Mon Harrison Neighborhood Hospital.
“No one should be exempt from following the state process. We applied, proved feasibility and need, and received state approval without opposition,” Goldberg said. “These standards should apply to all hospitals equally.”
Next Steps for HB 3487
The bill was set for markup and passage in the House Health Committee on Thursday. To advance, it must clear the House of Delegates and reach the Senate by April 2, known as Crossover Day—the 50th day of the legislative session, when bills must pass their house of origin.
WVU Medicine declined to comment on the proposed legislation.
