Indicates Matter Stricken

Indicates New Matter

 

Committee Report

April 2, 2026

 

H. 5173

 

Introduced by Reps. Hewitt, Bannister and G. M. Smith

 

S. Printed 4/2/26--H.

Read the first time February 11, 2026

 

________

 

The committee on House Ways and Means

To whom was referred a Bill (H. 5173) to amend the South Carolina Code of Laws by amending Section 44-7-130, relating to healthcare facility definitions, so as to change the definition of hospital, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass:

 

B.W. BANNISTER for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill expands the definition of hospitals in Article 3 of Chapter 7, Title 44, related to the State Health Facility Licensure Act to include REHs. Effective January 1, 2023, REHs were established as a new Medicare provider type pursuant to the federal Consolidated Appropriations Acts of 2021.

This bill will have no expenditure impact on DHHS or DPH, as both agencies anticipate any responsibilities created by this bill can be managed within existing staff and appropriations.

 

State Revenue

This bill may result in a minimal revenue decrease for DPH. Regulation 60-16.201(G) requires an annual $10 licensure fee per inpatient bed. If an eligible hospital transitions to REH designation, the facility would no longer have inpatient beds, and therefore, no longer contribute these fees. DPH anticipates this revenue loss will be minimal as only a small number of hospitals with 50 or fewer beds are eligible for this designation.

 

Local Expenditure

RFA contacted all forty-six counties regarding this legislation and received responses from the counties of Charleston, Dorchester, Florence, Horry, and Lancaster. These counties indicate that the bill will have no expenditure impact.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 44-7-130, RELATING TO HEALTHCARE FACILITY DEFINITIONS, SO AS TO CHANGE THE DEFINITION OF HOSPITAL.

 

Whereas, the federal government, by and through the Centers for Medicare and Medicaid Services, published a final rule, effective January 1, 2023, establishing Rural Emergency Hospitals as a new Medicare provider type pursuant to the Consolidated Appropriations Acts of 2021; and

 

Whereas, this designation was created to respond to rural hospital closures and give rural communities greater access to healthcare; and

 

Whereas, it is the intent of the General Assembly to clarify that this designation shall exist in South Carolina in order to provide greater access to care in rural communities. Now, therefore,

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Section 44-7-130(17) of the S.C. Code is amended to read:

 

    (17) "Hospital" means a facility that is organized and administered to provide overnight medical or surgical care or nursing care for an illness, injury, or infirmity and must provide on-campus emergency services; that may provide obstetrical care; and in which all diagnoses, treatment, or care is administered by or under the direction of persons currently licensed to practice medicine, surgery, or osteopathy. This shall include all hospitals that convert to Rural Emergency Hospitals pursuant to 42 C.F.R. Part 485 Subpart E and Section 125 of the Consolidated Appropriations Act of 2021.

    "Hospital" may include a residential treatment facility for children, adolescents, or young adults in need of mental health treatment that is physically a part of a licensed psychiatric hospital. This definition does not include facilities that are licensed by the Department of Social Services. A residential treatment facility for children, adolescents, or young adults in need of mental health treatment that is physically part of a licensed psychiatric hospital is not required to provide on-campus emergency services.

SECTION 2.  This act takes effect upon approval by the Governor.

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