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HB 7392

AN ACT RELATING TO HEALTH AND SAFETY -- DETERMINATION OF NEED FOR NEW HEALTHCARE EQUIPMENT AND NEW INSTITUTIONAL HEALTH SERVICES

2026 Regular Session Introduced by Mike Chippendale and 7 co-sponsors

HB 7392 caps total Rhode Island CON fees for new or expanded healthcare equipment and services at $25,000, while preserving base fees and a $750 expedited option.

05/12/2026 Committee recommended measure be held for further study
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WeVote Research Nonpartisan
Bill Summary · HB 7392

Bill Overview

  • Bill: HB 7392
  • Session: 2026
  • Jurisdiction: Rhode Island
  • Title: AN ACT RELATING TO HEALTH AND SAFETY -- DETERMINATION OF NEED FOR NEW HEALTHCARE EQUIPMENT AND NEW INSTITUTIONAL HEALTH SERVICES
  • Introduced: January 28, 2026
  • Primary purpose: Amend the certificate-of-need (CON) application fee requirements to cap total application fees in the Rhode Island CON program and clarify fee structure. The act takes effect upon passage and applies to all CON applications except those filed by state-owned facilities.

What the bill would change

  • Application fees cap: The bill sets a maximum total CON application fee of $25,000 for applications proposing new or expanded healthcare equipment or institutional health services.
  • Fee schedule (existing framework remains, with modifications):
    • General CON applications (not involving new/expanded tertiary or specialty care services):
    • Base application fee: $500 per application
    • Capital expenditure surcharge: 0.25% of total capital costs
    • Expedited review applications (under § 23-15-5):
    • Processing fee: $750 per application
    • Capital expenditure surcharge: 0.25% of total capital costs
    • Applications proposing new or expanded tertiary or specialty care services (as defined in 23-15-2(10)(vi)):
    • Base fee: $10,000
    • Capital expenditure surcharge: 0.25% of total capital costs
    • Fee cap: Total fees for these can go up to a maximum of $25,000
  • Non-refundable: All CON application fees are non-refundable.
  • Revenue allocation: All collected fees still go to the general fund.

Who is affected

  • Affected entities:
    • Healthcare facilities and entities seeking CON approval for new or expanded equipment or institutional health services in Rhode Island (except state-owned facilities, which are exempt from the base application fee requirement).
  • Exemptions:
    • Health care facilities owned and operated by the State of Rhode Island are exempt from the application fee requirement.

Key definitions and scope

  • Certificate of Need (CON): The regulatory review process for proposed capital expenditures or service changes involving healthcare equipment or institutional health services to determine whether the public health, safety, and welfare require the action.
  • Expanded/new tertiary or specialty care services: As defined in § 23-15-2(10)(vi); these applications have higher base fees but are now subject to a cap.

Procedural and timeline aspects

  • Effective date: The act takes effect upon passage.
  • Process timeline: The bill maintains the existing CON application process and fee structure for most applications but introduces a lifetime cap of $25,000 on total fees for certain high-cost or specialized proposals (tertiary/specialty care), ensuring fees do not exceed that cap.
  • House actions: Referred to House Finance; scheduled for a hearing/consideration in May 2026.

Potential impact

  • Financial: The cap of $25,000 on total CON fees could reduce the maximum financial burden for applicants proposing large or expensive projects, particularly those with high capital costs, by preventing fees from exceeding the cap.
  • Administrative: Fee collection remains centralized in the general fund; state facilities are exempt from the base application fee, potentially reducing procedural barriers for state-owned health facilities.
  • Access and planning: By clarifying and capping fees, applicants may plan more accurately for project budgeting and feasibility in the CON process.
  • Policy signal: The act signals a preference to limit CON-related fees to a predictable maximum, potentially influencing the number and type of proposed projects.

Summary

HB 7392 tightens and caps the fees associated with Rhode Island’s certificate-of-need review for new healthcare equipment and institutional health services. While it preserves the existing fee structure (base fees plus a 0.25% capital-cost surcharge) for most applications and adds a 750-dollar expedited-review option, it imposes an overall cap of $25,000 on total CON fees for applicable projects, with state-owned facilities exempt from the base fee. The act takes effect upon passage.

Compiled from official sources — confirm details with the bill’s official record.

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