HB0599 • 2026

Health - Licensure of Hospitals - Ownership Requirements

Healthcare

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Delegates Hill and Smith
Last action: 2026-03-18
Official status: In the Senate - Hearing 3/24 at 1:00 p.m.
Effective date: 2026-10-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Health - Licensure of Hospitals - Ownership Requirements

Requiring that hospitals, to qualify for a license on or after October 1, 2026, qualify as a nonprofit organization under federal law and be registered as a nonprofit organization with the State; requiring hospitals that receive licensure on or after October 1, 2026, to maintain status as a nonprofit organization as a condition of licensure; and providing that, on or after October 1, 2026, the ownership of a licensed hospital may be transferred only to a nonprofit organization.

What This Bill Does

Requiring that hospitals, to qualify for a license on or after October 1, 2026, qualify as a nonprofit organization under federal law and be registered as a nonprofit organization with the State; requiring hospitals that receive licensure on or after October 1, 2026, to maintain status as a nonprofit organization as a condition of licensure; and providing that, on or after October 1, 2026, the ownership of a licensed hospital may be transferred only to a nonprofit organization.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-03-18 Senate
Hearing 3/24 at 1:00 p.m.
2026-02-23 House
Favorable Report by Health
2026-02-20 House
Third Reading Passed (96-37)
2026-02-19 Senate
Referred Finance
2026-02-18 House
Favorable Adopted
2026-02-18 House
Second Reading Passed
2026-02-11 House
Hearing canceled
2026-02-11 House
Hearing 2/11 at 2:00 p.m.
2026-01-28 House
First Reading Health
2026-01-28 House
Hearing 2/11 at 1:30 p.m.
Maryland General Assembly
Text - First - Health - Licensure of Hospitals - Ownership Requirements
Maryland General Assembly
Vote - House - Committee - Health
Maryland General Assembly
Text - Third - Health - Licensure of Hospitals - Ownership Requirements

Official Summary Text

Requiring that hospitals, to qualify for a license on or after October 1, 2026, qualify as a nonprofit organization under federal law and be registered as a nonprofit organization with the State; requiring hospitals that receive licensure on or after October 1, 2026, to maintain status as a nonprofit organization as a condition of licensure; and providing that, on or after October 1, 2026, the ownership of a licensed hospital may be transferred only to a nonprofit organization.

Current Bill Text

Read the full stored bill text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0599*

HOUSE BILL 599
J3 6lr0636

By: Delegates Hill and Smith
Introduced and read first time: January 28, 2026
Assigned to: Health
Committee Report: Favorable
House action: Adopted
Read second time: February 18, 2026

CHAPTER ______

AN ACT concerning 1

Health – Licensure of Hospitals – Ownership Requirements 2

FOR the purpose of requiring that hospitals, to qualify for a license on or after a certain 3
date, qualify as a nonprofit organization under federal law and be registered as a 4
nonprofit organization with the State; requiring hospitals that receive licensure on 5
or after a certain date to maintain status as a nonprofit organiz ation as a condition 6
of licensure; providing that, on or after a certain date, the ownership of a licensed 7
hospital may be transferred only to a nonprofit organization; and generally relating 8
to the licensure of hospitals. 9

BY repealing and reenacting, without amendments, 10
Article – Health – General 11
Section 19–319(a) 12
Annotated Code of Maryland 13
(2023 Replacement Volume and 2025 Supplement) 14

BY adding to 15
Article – Health – General 16
Section 19–319(k) 17
Annotated Code of Maryland 18
(2023 Replacement Volume and 2025 Supplement) 19

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21

2 HOUSE BILL 599

Article – Health – General 1

19–319. 2

(a) To qualify for a license, an applicant and the hospital or related institution to 3
be operated shall meet the requirements of this section. 4

(K) (1) (I) TO QUALIFY FOR A LICE NSE O N OR AFTER OCTOBER 1, 5
2026, THE HOSPITAL TO BE OPERATED SHALL QUALIFY AS A NONPROF IT 6
ORGANIZATION UNDER F EDERAL LAW AND BE REGISTERED AS A N ONPROFIT 7
ORGANIZATION WITH THE STATE. 8

(II) A HOSPITAL THAT RECEIV ES LICENSURE ON OR A FTER 9
OCTOBER 1, 2026, SHALL MAINTAIN STATUS AS A NONPROFIT ORG ANIZATION AS A 10
CONDITION OF LICENSURE. 11

(2) ON OR AFTER OCTOBER 1, 2026, THE OWNERSHIP OF A LICENSED 12
HOSPITAL MAY BE TRANSFERRED ONLY TO A NONPROFIT ORGANIZATION. 13

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
October 1, 2026. 15

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.