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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1597*
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
AN ACT concerning 1
Health – Unregulated Space in Hospital Operating Suites – Pilot Project 2
FOR the purpose of establishing an unregulated space in hospital operating suites pilot 3
project; requiring the Health Services Cost Review Commission to administer the 4
pilot project; requiring the Commission to develop certain criteria and standards for 5
the pilot project; requiring certain ambulatory surg ical centers and freestanding 6
surgical centers to provide the Commission with certain information ; and generally 7
relating to the unregulated space in hospital operating suites pilot project. 8
BY adding to 9
Article – Health – General 10
Section 19–209 11
Annotated Code of Maryland 12
(2023 Replacement Volume and 2025 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Health – General 16
19–209. 17
(A) THERE IS AN UNREGULAT ED SPACE IN HOSPITAL OPERATING SUITES 18
PILOT PROJECT. 19
(B) THE PILOT PROJECT SHALL BE ADMINISTERED BY THE COMMISSION. 20
(C) (1) THE COMMISSION IS AUTHORI ZED TO ALLOW UP TO F IVE 21
HOSPITALS TO PARTICIPATE IN THE PILOT PROJECT. 22
2 HOUSE BILL 1597
(2) A HOSPITAL PARTICIPATI NG IN THE PILOT PROJ ECT MAY BE 1
SUBJECT TO AN ALTERN ATE METHOD OF RATE D ETERMINATION, INCLUDING AN 2
EXEMPTION FROM RATES THAT ALLOWS UNREGULATE D OPERATING ROOM SPA CE 3
TO BE PHYSICALLY LOCATED WITHIN A REGULATED FACILITY. 4
(3) A HOSPITAL PARTICIPATI NG IN THE PILOT PROJ ECT IS 5
AUTHORIZED TO MAKE AVAILABLE UNREGULATED OPERATING ROOM SPACE TO ALL 6
PATIENTS AND ALL PAY ERS, WITH NO D UPLICATION OF SERVIC ES IN REGULATED 7
OPERATING ROOM SPACE. 8
(D) THE COMMISSION SHALL DEVE LOP CRITERIA AND STA NDARDS FOR 9
HOSPITALS PARTICIPATING IN THE PILOT PROJECT, INCLUDING THAT: 10
(1) A PARTICIPATING HOSPIT AL SHALL OFFER CHARI TY CARE 11
CONSISTENT WITH REGULATED HOSPITAL SERVICES; 12
(2) THE BILLED CHARGE FOR A SERVICE MAY NOT BE HIGHER THAN 13
THE PARTICIPATING HOSPITAL’S BILLED CHARGE FOR A SIMILAR SERVICE; 14
(3) THE COST TO THE MEDICAL ASSISTANCE PROGRAM AND 15
MEDICARE SHALL BE LOWER THAN A SIMILAR REGULATED HOSPITAL SERVICE; AND 16
(4) A PARTICIPATING HOSPIT AL SHALL INCREASE CO NSUMER 17
AWARENESS AND EDUCATION ABOUT REGULATED AND NONREGULATED SERVICES, 18
INCLUDING THE POTENTIAL FOR ADDITIONAL BILLED CHARGES FROM PHYSICIANS. 19
(E) (1) ON OR BEFORE DECEMBER 1 EACH YEAR , THE COMMISSION 20
SHALL REPORT , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 21
ARTICLE, TO THE SENATE FINANCE COMMITTEE AND THE HOUSE HEALTH 22
COMMITTEE ON: 23
(I) 1. THE TYPES OF PROCEDUR ES THAT HAVE OCCURRE D 24
IN A PARTICIPATING HOSPITAL’S UNREGULATED OPERATING ROOM SPACE; AND 25
2. WHETHER THE OUTCOME O F THOSE PROCEDURES 26
INDICATES THAT THEY WERE APPRO PRIATELY PERFORMED I N UNREGULATED 27
OPERATING ROOM SPACE; 28
(II) THE COSTS ASSOCIATED WITH A HOSPITAL ’S 29
PARTICIPATION IN THE PILOT PROJECT; AND 30
HOUSE BILL 1597 3
(III) THE EFFECTS OF THE PI LOT PROJECT ON THE STATE’S 1
ACHIEVING HEALTHCARE EFFICIENCY THROUGH ACCOUNTABLE DESIGN 2
(AHEAD) MODEL. 3
(2) EACH AMBULATORY SURGICAL CENTER ASSOCIATED WITH A 4
PARTICIPATING HOSPIT AL AND FREESTANDING SURGICAL CENTER IN A 5
PARTICIPATING HOSPIT AL’S AREA SHALL PROVIDE THE COMMISSION WITH 6
INFORMATION DETERMINED NECESSARY BY THE COMMISSION TO COMPLETE THE 7
REPORT REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
1, 2026. It shall remain effective for a period of 3 years and, at the end of June 30, 202 9, 10
this Act, with no further action required by the General Assembly, shall be abrogated and 11
of no further force and effect. 12