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To: Public Health and Human
Services; State Affairs
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representatives Creekmore IV, Karriem
HOUSE BILL NO. 1622
(As Sent to Governor)
AN ACT TO ESTABLISH THE SMALL COMMUNITY HOSPITAL PILOT 1
PROGRAM; TO DEFINE THE TERM "SMALL COMMUNITY HOSPITAL" AS USED IN 2
THIS SECTION; TO PROVIDE THAT SUCH A HOSPITAL SHALL RECEIVE AN 3
EXEMPTION FROM THE REQUIREMENT TO OBTAIN A CERTIFICATE OF NEED; TO 4
PROVIDE THAT SMALL COMMUNITY HOSPITALS WITHIN THE DELTA PUBLIC 5
HEALTH REGION AS DESIGNATED BY THE MISSISSIPPI STATE DEPARTMENT OF 6
HEALTH (DEPARTMENT) SHALL RECEIVE TWO SUCH EXEMPTIONS; TO PROVIDE 7
THAT SUCH EXEMPTION SHALL BE LIMITED TO THE MAIN BUILDING CAMPUS 8
OF THE SMALL COMMUNITY HOSPITAL AND A FIVE-MILE RADIUS AROUND THE 9
MAIN BUILDING CAMPUS; TO PROVIDE THAT AN EXEMPTION SHALL NOT 10
EXTEND TO CLINICS OR OTHER FACILITIES OWNED OR OPERATED BY THE 11
SMALL COMMUNITY HOSPITAL THAT ARE NOT LOCATED ON THE MAIN CAMPUS, 12
AND SHALL NOT APPLY TO A SERVICE FOR WHICH THERE IS A GENERAL 13
CERTIFICATE OF NEED MORATORIUM OR TO APPLICATIONS THAT WOULD PLACE 14
THE LICENSED HOSPITAL RECEIVING THE EXEMPTION WITHIN 35 MILES OF 15
ANOTHER LICENSED HOSPITAL; TO AUTHORIZE THE STATE HEALTH OFFICER 16
TO ISSUE A LICENSE TO OPERATE AN END-STAGE RENAL DISEASE (ESRD) 17
FACILITY FOR NOT MORE THAN EIGHT SMALL COMMUNITY HOSPITALS; TO 18
AUTHORIZE THE STATE HEALTH OFFICER TO ISSUE A LICENSE TO OPERATE A 19
GERIATRIC PSYCHIATRIC UNIT TO ANY SMALL COMMUNITY HOSPITAL; TO 20
PROVIDE THAT THE DECISION OF THE STATE HEALTH OFFICER TO ISSUE A 21
LICENSE UNDER THIS PROGRAM IS FINAL, AND NOT SUBJECT TO JUDICIAL 22
REVIEW; TO SET FORTH LEGISLATIVE FINDINGS AS TO THE CURRENT 23
MORATORIA REGARDING MULTIPLE CERTIFICATE OF NEED SERVICE TYPES; TO 24
DIRECT THE DEPARTMENT, IN CONJUNCTION WITH THE DIVISION OF 25
MEDICAID, TO REVIEW AND REPORT BY DECEMBER 1, 2026, AND ON 26
DECEMBER 1 OF EACH SECOND YEAR THEREAFTER, ON CAPACITY AND 27
UTILIZATION DATA, MEDICAID EXPENDITURE TRENDS, EVIDENCE OF EXCESS 28
CAPACITY OR UNMET NEED, FIVE-YEAR FISCAL PROJECTIONS UNDER 29
CONTINUATION AND REMOVAL SCENARIOS, AND STATE FISCAL EXPOSURE 30
RELATED TO HEALTH CARE; TO AMEND SECTION 41-7-191, MISSISSIPPI 31
CODE OF 1972, AS AMENDED BY HOUSE BILL NO. 3, 2026 REGULAR 32
SESSION, TO EXEMPT FROM THE REQUIREMENT OF A CERTIFICATE OF NEED 33
ANY ACTIVITY CONDUCTED OR UNDERTAKEN IN ISSAQUENA COUNTY OR 34
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HUMPHREYS COUNTY THAT WOULD OTHERWISE REQUIRE A CERTIFICATE OF 35
NEED, EXCEPT THAT THE MORATORIA ON THE ISSUANCE OF CERTAIN 36
CERTIFICATES OF NEED SHALL APPLY TO ACTIVITIES IN THOSE COUNTIES; 37
TO AMEND SECTION 41-7-201, MISSISSIPPI CODE OF 1972, TO PROVIDE 38
THAT ANY PARTY AGGRIEVED BY THE FINAL ORDER OF THE STATE 39
DEPARTMENT OF HEALTH TO APPROVE AN APPLICATION FOR A CERTIFICATE 40
OF NEED THAT EXERCISES THE RIGHT OF APPEAL SHALL BE REQUIRED TO 41
REIMBURSE THE APPLICANT WHOSE APPLICATION WAS APPROVED FOR ALL 42
ATTORNEY, CONSULTANT AND OTHER FEES RELATED TO THE APPEAL IF SUCH 43
FINAL ORDER IS NOT VACATED OR SET ASIDE BY THE CHANCERY COURT OR 44
BY THE SUPREME COURT OF THE STATE OF MISSISSIPPI; AND FOR RELATED 45
PURPOSES. 46
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 47
SECTION 1. (1) The Small Community Hospital Pilot Program 48
is established. 49
(2) As used in this section, "hospital in a small community" 50
or "small community hospital" means a hospital, as that term is 51
defined in Section 41-7-173(h)(i), which is located: 52
(a) In a county that does not contain a municipality 53
whose population exceeds fifteen thousand (15,000) according to 54
the 2020 decennial census, and that also does not contain any 55
portion of a municipality whose population exceeds fifteen 56
thousand (15,000) according to the 2020 decennial census; or 57
(b) Within the region designated by the Mississippi 58
State Department of Health as the Delta Public Health Region as of 59
January 1, 2026. 60
A "small community hospital" shall not include licensed Rural 61
Emergency Hospitals as designated by the federal Centers for 62
Medicare and Medicaid Services. 63
(3) The State Health Officer shall issue a license to 64
operate a geriatric psychiatric unit to any hospital in a small 65
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community. The license to operate a geriatric psychiatric unit 66
shall be limited to the main building campus of the small 67
community hospital, as of January 1, 2026, and to a five (5) mile 68
radius around the main building campus of the small community 69
hospital. A license to operate a geriatric psychiatric unit under 70
this subsection (3) shall not be counted toward the exemption 71
allotment under subsection (4)(a) of this section. 72
(4) (a) Subject to the restriction in paragraph (b) of this 73
subsection (4), each hospital in a small community under 74
subsection (2)(a) of this section shall receive one (1) exemption, 75
and each hospital in a small community under subsection (2)(b) of 76
this section shall receive two (2) exemptions, from the 77
requirement to obtain a certificate of need under Section 41-7-171 78
et seq. for an activity that would otherwise require a certificate 79
of need. An exemption issued under this subsection (4) shall be 80
limited to the main building campus of the small community 81
hospital, as of January 1, 2026, and to a five (5) mile radius 82
around the main building campus of the small community hospital. 83
Such exemption shall not extend to clinics or other facilities 84
owned or operated by the small community hospital that are not 85
located on the main campus of the small community hospital. Such 86
exemption shall not apply to: 87
(i) A service for which there is a general 88
certificate of need moratorium; or 89
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(ii) Applications for a certificate of need that 90
would place the licensed hospital receiving the exemption within 91
thirty-five (35) miles of another licensed hospital or otherwise 92
jeopardize a licensed hospital's federal critical access hospital 93
designation. 94
(b) The State Health Officer may issue a license to 95
operate an end-stage renal disease (ESRD) facility for not more 96
than eight (8) hospitals in a small community. No more than two 97
(2) such ESRD facilities may be located within each of the four 98
(4) Public Health Regions designated by the Mississippi State 99
Department of Health as of January 1, 2026. If more than two (2) 100
small community hospitals within the same Public Health Region 101
apply for a license to operate an ESRD facility, the small 102
community hospitals in areas most remote from existing dialysis 103
units shall be issued licenses. A license obtained under this 104
paragraph (b) shall be counted toward the exemption allotment 105
under paragraph (a) of this subsection. If a small community 106
hospital applies for a license to operate an ESRD facility under 107
this paragraph (b) but is not granted a license, such hospital may 108
use its exemption under paragraph (a) of this subsection for 109
another service. 110
(5) An exemption or license issued under subsection (3) or 111
(4) of this section shall be specific to and solely for the 112
hospital to which it was issued and may not be transferred to 113
another entity unless the hospital itself is transferred. If a 114
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small community hospital does not apply for an exemption or 115
license on or before June 30, 2027, then the small community 116
hospital's eligibility for an exemption or license shall expire. 117
(6) The decision of the State Health Officer to issue a 118
license under this section is final, and not subject to judicial 119
review. Any person or entity which wishes to challenge the 120
issuance of a license may file with the State Health Officer a 121
request for reconsideration within seven (7) calendar days of the 122
decision of the State Health Officer. If such a request is filed, 123
the State Health Officer or his or her designee shall conduct a 124
hearing no sooner than fourteen (14) days from the original 125
decision, and no later than twenty-one (21) days from the original 126
decision, at which hearing the interested parties may be heard. 127
The hearing shall be informal in nature, and there shall be no 128
right to engage in discovery. The purpose of the hearing is to 129
allow a party to offer an objection to the issuance of the 130
license, or to present, in a summary fashion, matters which may 131
have been overlooked. After the hearing, the State Health Officer 132
may decide not to issue the license, to further consider the 133
issuance of the license or to reaffirm his or her original 134
decision. Notwithstanding the foregoing, the State Hearing 135
Officer's decision to issue a license under this section is final, 136
and not subject to judicial review. 137
SECTION 2. (1) The Legislature finds and determines that: 138
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(a) It is in the public interest to preserve the fiscal 139
integrity of the Medicaid program, to safeguard the State General 140
Fund, to prevent unnecessary duplication of services, and to 141
ensure that expansion of health care capacity occurs only upon a 142
demonstration of public necessity. 143
(b) The Legislature has a legitimate interest in 144
ensuring the efficient and sustainable delivery of publicly 145
financed health care, and that regulatory mechanisms are used to 146
avoid excess capacity in service lines where public funds are a 147
primary source of payment. 148
(c) The current number of licensed beds in skilled 149
nursing facilities within multiple regions of the state is 150
sufficient to meet current needs, and that increasing capacity 151
would lead to unnecessary institutionalization. 152
(d) There is currently no comprehensive statewide 153
demonstration of systemic capacity shortages of licensed beds in 154
intermediate care facilities requiring expansion. 155
(e) Expansion of institutional capacity in intermediate 156
care facilities for individuals with intellectual disabilities, 157
absent objective evidence of unmet need, may reasonably increase 158
aggregate public expenditures. 159
(f) The state maintains a network of licensed home 160
health agencies that serve all geographic regions. While 161
increased provider entry may arguably enhance consumer choice, 162
expansion of provider supply in utilization-driven reimbursement 163
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systems may reasonably be expected to increase service volume and 164
aggregate Medicaid expenditures. There is currently no 165
comprehensive statewide demonstration of systemic capacity 166
shortage of services by home health agencies or of unmet need to 167
suggest that additional home health licensure is required to 168
ensure access. 169
(2) Therefore, continuation of the moratorium on skilled 170
nursing facilities, intermediate care facilities, intermediate 171
care facilities for individuals with intellectual disabilities, 172
and home health agencies is rationally related to preventing 173
unnecessary expansion, avoiding excess institutional capacity and 174
duplication of institutional services, preventing utilization 175
growth that is not supported by documented need, cost containment, 176
ensuring appropriate allocation of limited Medicaid and other 177
health care resources, and protecting the fiscal sustainability of 178
the Medicaid program. 179
(3) (a) The Mississippi State Department of Health, in 180
conjunction with the Division of Medicaid, shall biennially review 181
the following topics: 182
(i) Capacity and utilization data; 183
(ii) Medicaid expenditure trends; 184
(iii) Evidence of excess capacity or unmet need; 185
(iv) Five-year fiscal projections under 186
continuation and removal scenarios; and 187
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(v) Analysis of state fiscal exposure related to 188
health care. 189
(b) The department and the division shall make a final 190
joint report of their findings and recommendations, including any 191
recommended legislation, to the Legislature before December 1, 192
2026, and on December 1 of each second year thereafter. 193
SECTION 3. Section 41-7-191, Mississippi Code of 1972, as 194
amended by House Bill No. 3, 2026 Regular Session is amended as 195
follows: 196
41-7-191. (1) Except as otherwise provided in Section 1 of 197
this act or in subsection (24) of this section, no person shall 198
engage in any of the following activities without obtaining the 199
required certificate of need: 200
(a) The construction, development or other 201
establishment of a new health care facility, which establishment 202
shall include the reopening of a health care facility that has 203
ceased to operate for a period of sixty (60) months or more; 204
(b) The relocation of a health care facility or portion 205
thereof, or major medical equipment, unless such relocation of a 206
health care facility or portion thereof, or major medical 207
equipment, which does not involve a capital expenditure by or on 208
behalf of a health care facility, is within five thousand two 209
hundred eighty (5,280) feet from the main entrance of the health 210
care facility; 211
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(c) Any change in the existing bed complement of any 212
health care facility through the addition or conversion of any 213
beds or the alteration, modernizing or refurbishing of any unit or 214
department in which the beds may be located; however, if a health 215
care facility has voluntarily delicensed some of its existing bed 216
complement, it may later relicense some or all of its delicensed 217
beds without the necessity of having to acquire a certificate of 218
need. The State Department of Health shall maintain a record of 219
the delicensing health care facility and its voluntarily 220
delicensed beds and continue counting those beds as part of the 221
state's total bed count for health care planning purposes. If a 222
health care facility that has voluntarily delicensed some of its 223
beds later desires to relicense some or all of its voluntarily 224
delicensed beds, it shall notify the State Department of Health of 225
its intent to increase the number of its licensed beds. The State 226
Department of Health shall survey the health care facility within 227
thirty (30) days of that notice and, if appropriate, issue the 228
health care facility a new license reflecting the new contingent 229
of beds. However, in no event may a health care facility that has 230
voluntarily delicensed some of its beds be reissued a license to 231
operate beds in excess of its bed count before the voluntary 232
delicensure of some of its beds without seeking certificate of 233
need approval; 234
(d) Offering of the following health services if those 235
services have not been provided on a regular basis by the proposed 236
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provider of such services within the period of twelve (12) months 237
prior to the time such services would be offered: 238
(i) Open-heart surgery services; 239
(ii) Cardiac catheterization services; 240
(iii) Comprehensive inpatient rehabilitation 241
services; 242
(iv) Licensed psychiatric services; 243
(v) Licensed chemical dependency services; 244
(vi) Radiation therapy services; 245
(vii) Diagnostic imaging services of an invasive 246
nature, i.e. invasive digital angiography; 247
(viii) Nursing home care as defined in 248
subparagraphs (iv), (vi) and (viii) of Section 41-7-173(h); 249
(ix) Home health services; 250
(x) Swing-bed services; 251
(xi) Ambulatory surgical services; 252
(xii) Magnetic resonance imaging services; 253
(xiii) [Deleted] 254
(xiv) Long-term care hospital services; 255
(xv) Positron emission tomography (PET) services; 256
(e) The relocation of one or more health services from 257
one physical facility or site to another physical facility or 258
site, unless such relocation, which does not involve a capital 259
expenditure by or on behalf of a health care facility, (i) is to a 260
physical facility or site within five thousand two hundred eighty 261
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(5,280) feet from the main entrance of the health care facility 262
where the health care service is located, or (ii) is the result of 263
an order of a court of appropriate jurisdiction or a result of 264
pending litigation in such court, or by order of the State 265
Department of Health, or by order of any other agency or legal 266
entity of the state, the federal government, or any political 267
subdivision of either, whose order is also approved by the State 268
Department of Health; 269
(f) The acquisition or otherwise control of any major 270
medical equipment for the provision of medical services; however, 271
(i) the acquisition of any major medical equipment used only for 272
research purposes, and (ii) the acquisition of major medical 273
equipment to replace medical equipment for which a facility is 274
already providing medical services and for which the State 275
Department of Health has been notified before the date of such 276
acquisition shall be exempt from this paragraph; an acquisition 277
for less than fair market value must be reviewed, if the 278
acquisition at fair market value would be subject to review; 279
(g) Changes of ownership of existing health care 280
facilities in which a notice of intent is not filed with the State 281
Department of Health at least thirty (30) days prior to the date 282
such change of ownership occurs, or a change in services or bed 283
capacity as prescribed in paragraph (c) or (d) of this subsection 284
as a result of the change of ownership; an acquisition for less 285
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than fair market value must be reviewed, if the acquisition at 286
fair market value would be subject to review; 287
(h) The change of ownership of any health care facility 288
defined in subparagraphs (iv), (vi) and (viii) of Section 289
41-7-173(h), in which a notice of intent as described in paragraph 290
(g) has not been filed and if the Executive Director, Division of 291
Medicaid, Office of the Governor, has not certified in writing 292
that there will be no increase in allowable costs to Medicaid from 293
revaluation of the assets or from increased interest and 294
depreciation as a result of the proposed change of ownership; 295
(i) Any activity described in paragraphs (a) through 296
(h) if undertaken by any person if that same activity would 297
require certificate of need approval if undertaken by a health 298
care facility; 299
(j) Any capital expenditure or deferred capital 300
expenditure by or on behalf of a health care facility not covered 301
by paragraphs (a) through (h); 302
(k) The contracting of a health care facility as 303
defined in subparagraphs (i) through (viii) of Section 41-7-173(h) 304
to establish a home office, subunit, or branch office in the space 305
operated as a health care facility through a formal arrangement 306
with an existing health care facility as defined in subparagraph 307
(ix) of Section 41-7-173(h); 308
(l) The replacement or relocation of a health care 309
facility designated as a critical access hospital shall be exempt 310
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from subsection (1) of this section so long as the critical access 311
hospital complies with all applicable federal law and regulations 312
regarding such replacement or relocation; 313
(m) Reopening a health care facility that has ceased to 314
operate for a period of sixty (60) months or more, which reopening 315
requires a certificate of need for the establishment of a new 316
health care facility. 317
(2) The State Department of Health shall not grant approval 318
for or issue a certificate of need to any person proposing the new 319
construction of, addition to, or expansion of any health care 320
facility defined in subparagraphs (iv) (skilled nursing facility) 321
and (vi) (intermediate care facility) of Section 41-7-173(h) or 322
the conversion of vacant hospital beds to provide skilled or 323
intermediate nursing home care, except as hereinafter authorized: 324
(a) The department may issue a certificate of need to 325
any person proposing the new construction of any health care 326
facility defined in subparagraphs (iv) and (vi) of Section 327
41-7-173(h) as part of a life care retirement facility, in any 328
county bordering on the Gulf of Mexico in which is located a 329
National Aeronautics and Space Administration facility, not to 330
exceed forty (40) beds. From and after July 1, 1999, there shall 331
be no prohibition or restrictions on participation in the Medicaid 332
program (Section 43-13-101 et seq.) for the beds in the health 333
care facility that were authorized under this paragraph (a). 334
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(b) The department may issue certificates of need in 335
Harrison County to provide skilled nursing home care for 336
Alzheimer's disease patients and other patients, not to exceed one 337
hundred fifty (150) beds. From and after July 1, 1999, there 338
shall be no prohibition or restrictions on participation in the 339
Medicaid program (Section 43-13-101 et seq.) for the beds in the 340
nursing facilities that were authorized under this paragraph (b). 341
(c) The department may issue a certificate of need for 342
the addition to or expansion of any skilled nursing facility that 343
is part of an existing continuing care retirement community 344
located in Madison County, provided that the recipient of the 345
certificate of need agrees in writing that the skilled nursing 346
facility will not at any time participate in the Medicaid program 347
(Section 43-13-101 et seq.) or admit or keep any patients in the 348
skilled nursing facility who are participating in the Medicaid 349
program. This written agreement by the recipient of the 350
certificate of need shall be fully binding on any subsequent owner 351
of the skilled nursing facility, if the ownership of the facility 352
is transferred at any time after the issuance of the certificate 353
of need. Agreement that the skilled nursing facility will not 354
participate in the Medicaid program shall be a condition of the 355
issuance of a certificate of need to any person under this 356
paragraph (c), and if such skilled nursing facility at any time 357
after the issuance of the certificate of need, regardless of the 358
ownership of the facility, participates in the Medicaid program or 359
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admits or keeps any patients in the facility who are participating 360
in the Medicaid program, the State Department of Health shall 361
revoke the certificate of need, if it is still outstanding, and 362
shall deny or revoke the license of the skilled nursing facility, 363
at the time that the department determines, after a hearing 364
complying with due process, that the facility has failed to comply 365
with any of the conditions upon which the certificate of need was 366
issued, as provided in this paragraph and in the written agreement 367
by the recipient of the certificate of need. The total number of 368
beds that may be authorized under the authority of this paragraph 369
(c) shall not exceed sixty (60) beds. 370
(d) The State Department of Health may issue a 371
certificate of need to any hospital located in DeSoto County for 372
the new construction of a skilled nursing facility, not to exceed 373
one hundred twenty (120) beds, in DeSoto County. From and after 374
July 1, 1999, there shall be no prohibition or restrictions on 375
participation in the Medicaid program (Section 43-13-101 et seq.) 376
for the beds in the nursing facility that were authorized under 377
this paragraph (d). 378
(e) The State Department of Health may issue a 379
certificate of need for the construction of a nursing facility or 380
the conversion of beds to nursing facility beds at a personal care 381
facility for the elderly in Lowndes County that is owned and 382
operated by a Mississippi nonprofit corporation, not to exceed 383
sixty (60) beds. From and after July 1, 1999, there shall be no 384
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prohibition or restrictions on participation in the Medicaid 385
program (Section 43-13-101 et seq.) for the beds in the nursing 386
facility that were authorized under this paragraph (e). 387
(f) The State Department of Health may issue a 388
certificate of need for conversion of a county hospital facility 389
in Itawamba County to a nursing facility, not to exceed sixty (60) 390
beds, including any necessary construction, renovation or 391
expansion. From and after July 1, 1999, there shall be no 392
prohibition or restrictions on participation in the Medicaid 393
program (Section 43-13-101 et seq.) for the beds in the nursing 394
facility that were authorized under this paragraph (f). 395
(g) The State Department of Health may issue a 396
certificate of need for the construction or expansion of nursing 397
facility beds or the conversion of other beds to nursing facility 398
beds in either Hinds, Madison or Rankin County, not to exceed 399
sixty (60) beds. From and after July 1, 1999, there shall be no 400
prohibition or restrictions on participation in the Medicaid 401
program (Section 43-13-101 et seq.) for the beds in the nursing 402
facility that were authorized under this paragraph (g). 403
(h) The State Department of Health may issue a 404
certificate of need for the construction or expansion of nursing 405
facility beds or the conversion of other beds to nursing facility 406
beds in either Hancock, Harrison or Jackson County, not to exceed 407
sixty (60) beds. From and after July 1, 1999, there shall be no 408
prohibition or restrictions on participation in the Medicaid 409
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program (Section 43-13-101 et seq.) for the beds in the facility 410
that were authorized under this paragraph (h). 411
(i) The department may issue a certificate of need for 412
the new construction of a skilled nursing facility in Leake 413
County, provided that the recipient of the certificate of need 414
agrees in writing that the skilled nursing facility will not at 415
any time participate in the Medicaid program (Section 43-13-101 et 416
seq.) or admit or keep any patients in the skilled nursing 417
facility who are participating in the Medicaid program. This 418
written agreement by the recipient of the certificate of need 419
shall be fully binding on any subsequent owner of the skilled 420
nursing facility, if the ownership of the facility is transferred 421
at any time after the issuance of the certificate of need. 422
Agreement that the skilled nursing facility will not participate 423
in the Medicaid program shall be a condition of the issuance of a 424
certificate of need to any person under this paragraph (i), and if 425
such skilled nursing facility at any time after the issuance of 426
the certificate of need, regardless of the ownership of the 427
facility, participates in the Medicaid program or admits or keeps 428
any patients in the facility who are participating in the Medicaid 429
program, the State Department of Health shall revoke the 430
certificate of need, if it is still outstanding, and shall deny or 431
revoke the license of the skilled nursing facility, at the time 432
that the department determines, after a hearing complying with due 433
process, that the facility has failed to comply with any of the 434
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conditions upon which the certificate of need was issued, as 435
provided in this paragraph and in the written agreement by the 436
recipient of the certificate of need. The provision of Section 437
41-7-193(1) regarding substantial compliance of the projection of 438
need as reported in the current State Health Plan is waived for 439
the purposes of this paragraph. The total number of nursing 440
facility beds that may be authorized by any certificate of need 441
issued under this paragraph (i) shall not exceed sixty (60) beds. 442
If the skilled nursing facility authorized by the certificate of 443
need issued under this paragraph is not constructed and fully 444
operational within eighteen (18) months after July 1, 1994, the 445
State Department of Health, after a hearing complying with due 446
process, shall revoke the certificate of need, if it is still 447
outstanding, and shall not issue a license for the skilled nursing 448
facility at any time after the expiration of the eighteen-month 449
period. 450
(j) The department may issue certificates of need to 451
allow any existing freestanding long-term care facility in 452
Tishomingo County and Hancock County that on July 1, 1995, is 453
licensed with fewer than sixty (60) beds. For the purposes of 454
this paragraph (j), the provisions of Section 41-7-193(1) 455
requiring substantial compliance with the projection of need as 456
reported in the current State Health Plan are waived. From and 457
after July 1, 1999, there shall be no prohibition or restrictions 458
on participation in the Medicaid program (Section 43-13-101 et 459
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seq.) for the beds in the long-term care facilities that were 460
authorized under this paragraph (j). 461
(k) The department may issue a certificate of need for 462
the construction of a nursing facility at a continuing care 463
retirement community in Lowndes County. The total number of beds 464
that may be authorized under the authority of this paragraph (k) 465
shall not exceed sixty (60) beds. From and after July 1, 2001, 466
the prohibition on the facility participating in the Medicaid 467
program (Section 43-13-101 et seq.) that was a condition of 468
issuance of the certificate of need under this paragraph (k) shall 469
be revised as follows: The nursing facility may participate in 470
the Medicaid program from and after July 1, 2001, if the owner of 471
the facility on July 1, 2001, agrees in writing that no more than 472
thirty (30) of the beds at the facility will be certified for 473
participation in the Medicaid program, and that no claim will be 474
submitted for Medicaid reimbursement for more than thirty (30) 475
patients in the facility in any month or for any patient in the 476
facility who is in a bed that is not Medicaid-certified. This 477
written agreement by the owner of the facility shall be a 478
condition of licensure of the facility, and the agreement shall be 479
fully binding on any subsequent owner of the facility if the 480
ownership of the facility is transferred at any time after July 1, 481
2001. After this written agreement is executed, the Division of 482
Medicaid and the State Department of Health shall not certify more 483
than thirty (30) of the beds in the facility for participation in 484
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the Medicaid program. If the facility violates the terms of the 485
written agreement by admitting or keeping in the facility on a 486
regular or continuing basis more than thirty (30) patients who are 487
participating in the Medicaid program, the State Department of 488
Health shall revoke the license of the facility, at the time that 489
the department determines, after a hearing complying with due 490
process, that the facility has violated the written agreement. 491
(l) Provided that funds are specifically appropriated 492
therefor by the Legislature, the department may issue a 493
certificate of need to a rehabilitation hospital in Hinds County 494
for the construction of a sixty-bed long-term care nursing 495
facility dedicated to the care and treatment of persons with 496
severe disabilities including persons with spinal cord and 497
closed-head injuries and ventilator dependent patients. The 498
provisions of Section 41-7-193(1) regarding substantial compliance 499
with projection of need as reported in the current State Health 500
Plan are waived for the purpose of this paragraph. 501
(m) The State Department of Health may issue a 502
certificate of need to a county-owned hospital in the Second 503
Judicial District of Panola County for the conversion of not more 504
than seventy-two (72) hospital beds to nursing facility beds, 505
provided that the recipient of the certificate of need agrees in 506
writing that none of the beds at the nursing facility will be 507
certified for participation in the Medicaid program (Section 508
43-13-101 et seq.), and that no claim will be submitted for 509
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Medicaid reimbursement in the nursing facility in any day or for 510
any patient in the nursing facility. This written agreement by 511
the recipient of the certificate of need shall be a condition of 512
the issuance of the certificate of need under this paragraph, and 513
the agreement shall be fully binding on any subsequent owner of 514
the nursing facility if the ownership of the nursing facility is 515
transferred at any time after the issuance of the certificate of 516
need. After this written agreement is executed, the Division of 517
Medicaid and the State Department of Health shall not certify any 518
of the beds in the nursing facility for participation in the 519
Medicaid program. If the nursing facility violates the terms of 520
the written agreement by admitting or keeping in the nursing 521
facility on a regular or continuing basis any patients who are 522
participating in the Medicaid program, the State Department of 523
Health shall revoke the license of the nursing facility, at the 524
time that the department determines, after a hearing complying 525
with due process, that the nursing facility has violated the 526
condition upon which the certificate of need was issued, as 527
provided in this paragraph and in the written agreement. If the 528
certificate of need authorized under this paragraph is not issued 529
within twelve (12) months after July 1, 2001, the department shall 530
deny the application for the certificate of need and shall not 531
issue the certificate of need at any time after the twelve-month 532
period, unless the issuance is contested. If the certificate of 533
need is issued and substantial construction of the nursing 534
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facility beds has not commenced within eighteen (18) months after 535
July 1, 2001, the State Department of Health, after a hearing 536
complying with due process, shall revoke the certificate of need 537
if it is still outstanding, and the department shall not issue a 538
license for the nursing facility at any time after the 539
eighteen-month period. However, if the issuance of the 540
certificate of need is contested, the department shall require 541
substantial construction of the nursing facility beds within six 542
(6) months after final adjudication on the issuance of the 543
certificate of need. 544
(n) The department may issue a certificate of need for 545
the new construction, addition or conversion of skilled nursing 546
facility beds in Madison County, provided that the recipient of 547
the certificate of need agrees in writing that the skilled nursing 548
facility will not at any time participate in the Medicaid program 549
(Section 43-13-101 et seq.) or admit or keep any patients in the 550
skilled nursing facility who are participating in the Medicaid 551
program. This written agreement by the recipient of the 552
certificate of need shall be fully binding on any subsequent owner 553
of the skilled nursing facility, if the ownership of the facility 554
is transferred at any time after the issuance of the certificate 555
of need. Agreement that the skilled nursing facility will not 556
participate in the Medicaid program shall be a condition of the 557
issuance of a certificate of need to any person under this 558
paragraph (n), and if such skilled nursing facility at any time 559
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after the issuance of the certificate of need, regardless of the 560
ownership of the facility, participates in the Medicaid program or 561
admits or keeps any patients in the facility who are participating 562
in the Medicaid program, the State Department of Health shall 563
revoke the certificate of need, if it is still outstanding, and 564
shall deny or revoke the license of the skilled nursing facility, 565
at the time that the department determines, after a hearing 566
complying with due process, that the facility has failed to comply 567
with any of the conditions upon which the certificate of need was 568
issued, as provided in this paragraph and in the written agreement 569
by the recipient of the certificate of need. The total number of 570
nursing facility beds that may be authorized by any certificate of 571
need issued under this paragraph (n) shall not exceed sixty (60) 572
beds. If the certificate of need authorized under this paragraph 573
is not issued within twelve (12) months after July 1, 1998, the 574
department shall deny the application for the certificate of need 575
and shall not issue the certificate of need at any time after the 576
twelve-month period, unless the issuance is contested. If the 577
certificate of need is issued and substantial construction of the 578
nursing facility beds has not commenced within eighteen (18) 579
months after July 1, 1998, the State Department of Health, after a 580
hearing complying with due process, shall revoke the certificate 581
of need if it is still outstanding, and the department shall not 582
issue a license for the nursing facility at any time after the 583
eighteen-month period. However, if the issuance of the 584
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certificate of need is contested, the department shall require 585
substantial construction of the nursing facility beds within six 586
(6) months after final adjudication on the issuance of the 587
certificate of need. 588
(o) The department may issue a certificate of need for 589
the new construction, addition or conversion of skilled nursing 590
facility beds in Leake County, provided that the recipient of the 591
certificate of need agrees in writing that the skilled nursing 592
facility will not at any time participate in the Medicaid program 593
(Section 43-13-101 et seq.) or admit or keep any patients in the 594
skilled nursing facility who are participating in the Medicaid 595
program. This written agreement by the recipient of the 596
certificate of need shall be fully binding on any subsequent owner 597
of the skilled nursing facility, if the ownership of the facility 598
is transferred at any time after the issuance of the certificate 599
of need. Agreement that the skilled nursing facility will not 600
participate in the Medicaid program shall be a condition of the 601
issuance of a certificate of need to any person under this 602
paragraph (o), and if such skilled nursing facility at any time 603
after the issuance of the certificate of need, regardless of the 604
ownership of the facility, participates in the Medicaid program or 605
admits or keeps any patients in the facility who are participating 606
in the Medicaid program, the State Department of Health shall 607
revoke the certificate of need, if it is still outstanding, and 608
shall deny or revoke the license of the skilled nursing facility, 609
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at the time that the department determines, after a hearing 610
complying with due process, that the facility has failed to comply 611
with any of the conditions upon which the certificate of need was 612
issued, as provided in this paragraph and in the written agreement 613
by the recipient of the certificate of need. The total number of 614
nursing facility beds that may be authorized by any certificate of 615
need issued under this paragraph (o) shall not exceed sixty (60) 616
beds. If the certificate of need authorized under this paragraph 617
is not issued within twelve (12) months after July 1, 2001, the 618
department shall deny the application for the certificate of need 619
and shall not issue the certificate of need at any time after the 620
twelve-month period, unless the issuance is contested. If the 621
certificate of need is issued and substantial construction of the 622
nursing facility beds has not commenced within eighteen (18) 623
months after July 1, 2001, the State Department of Health, after a 624
hearing complying with due process, shall revoke the certificate 625
of need if it is still outstanding, and the department shall not 626
issue a license for the nursing facility at any time after the 627
eighteen-month period. However, if the issuance of the 628
certificate of need is contested, the department shall require 629
substantial construction of the nursing facility beds within six 630
(6) months after final adjudication on the issuance of the 631
certificate of need. 632
(p) The department may issue a certificate of need for 633
the construction of a municipally owned nursing facility within 634
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the Town of Belmont in Tishomingo County, not to exceed sixty (60) 635
beds, provided that the recipient of the certificate of need 636
agrees in writing that the skilled nursing facility will not at 637
any time participate in the Medicaid program (Section 43-13-101 et 638
seq.) or admit or keep any patients in the skilled nursing 639
facility who are participating in the Medicaid program. This 640
written agreement by the recipient of the certificate of need 641
shall be fully binding on any subsequent owner of the skilled 642
nursing facility, if the ownership of the facility is transferred 643
at any time after the issuance of the certificate of need. 644
Agreement that the skilled nursing facility will not participate 645
in the Medicaid program shall be a condition of the issuance of a 646
certificate of need to any person under this paragraph (p), and if 647
such skilled nursing facility at any time after the issuance of 648
the certificate of need, regardless of the ownership of the 649
facility, participates in the Medicaid program or admits or keeps 650
any patients in the facility who are participating in the Medicaid 651
program, the State Department of Health shall revoke the 652
certificate of need, if it is still outstanding, and shall deny or 653
revoke the license of the skilled nursing facility, at the time 654
that the department determines, after a hearing complying with due 655
process, that the facility has failed to comply with any of the 656
conditions upon which the certificate of need was issued, as 657
provided in this paragraph and in the written agreement by the 658
recipient of the certificate of need. The provision of Section 659
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41-7-193(1) regarding substantial compliance of the projection of 660
need as reported in the current State Health Plan is waived for 661
the purposes of this paragraph. If the certificate of need 662
authorized under this paragraph is not issued within twelve (12) 663
months after July 1, 1998, the department shall deny the 664
application for the certificate of need and shall not issue the 665
certificate of need at any time after the twelve-month period, 666
unless the issuance is contested. If the certificate of need is 667
issued and substantial construction of the nursing facility beds 668
has not commenced within eighteen (18) months after July 1, 1998, 669
the State Department of Health, after a hearing complying with due 670
process, shall revoke the certificate of need if it is still 671
outstanding, and the department shall not issue a license for the 672
nursing facility at any time after the eighteen-month period. 673
However, if the issuance of the certificate of need is contested, 674
the department shall require substantial construction of the 675
nursing facility beds within six (6) months after final 676
adjudication on the issuance of the certificate of need. 677
(q) (i) Beginning on July 1, 1999, the State 678
Department of Health shall issue certificates of need during each 679
of the next four (4) fiscal years for the construction or 680
expansion of nursing facility beds or the conversion of other beds 681
to nursing facility beds in each county in the state having a need 682
for fifty (50) or more additional nursing facility beds, as shown 683
in the fiscal year 1999 State Health Plan, in the manner provided 684
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in this paragraph (q). The total number of nursing facility beds 685
that may be authorized by any certificate of need authorized under 686
this paragraph (q) shall not exceed sixty (60) beds. 687
(ii) Subject to the provisions of subparagraph 688
(v), during each of the next four (4) fiscal years, the department 689
shall issue six (6) certificates of need for new nursing facility 690
beds, as follows: During fiscal years 2000, 2001 and 2002, one 691
(1) certificate of need shall be issued for new nursing facility 692
beds in the county in each of the four (4) Long-Term Care Planning 693
Districts designated in the fiscal year 1999 State Health Plan 694
that has the highest need in the district for those beds; and two 695
(2) certificates of need shall be issued for new nursing facility 696
beds in the two (2) counties from the state at large that have the 697
highest need in the state for those beds, when considering the 698
need on a statewide basis and without regard to the Long-Term Care 699
Planning Districts in which the counties are located. During 700
fiscal year 2003, one (1) certificate of need shall be issued for 701
new nursing facility beds in any county having a need for fifty 702
(50) or more additional nursing facility beds, as shown in the 703
fiscal year 1999 State Health Plan, that has not received a 704
certificate of need under this paragraph (q) during the three (3) 705
previous fiscal years. During fiscal year 2000, in addition to 706
the six (6) certificates of need authorized in this subparagraph, 707
the department also shall issue a certificate of need for new 708
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nursing facility beds in Amite County and a certificate of need 709
for new nursing facility beds in Carroll County. 710
(iii) Subject to the provisions of subparagraph 711
(v), the certificate of need issued under subparagraph (ii) for 712
nursing facility beds in each Long-Term Care Planning District 713
during each fiscal year shall first be available for nursing 714
facility beds in the county in the district having the highest 715
need for those beds, as shown in the fiscal year 1999 State Health 716
Plan. If there are no applications for a certificate of need for 717
nursing facility beds in the county having the highest need for 718
those beds by the date specified by the department, then the 719
certificate of need shall be available for nursing facility beds 720
in other counties in the district in descending order of the need 721
for those beds, from the county with the second highest need to 722
the county with the lowest need, until an application is received 723
for nursing facility beds in an eligible county in the district. 724
(iv) Subject to the provisions of subparagraph 725
(v), the certificate of need issued under subparagraph (ii) for 726
nursing facility beds in the two (2) counties from the state at 727
large during each fiscal year shall first be available for nursing 728
facility beds in the two (2) counties that have the highest need 729
in the state for those beds, as shown in the fiscal year 1999 730
State Health Plan, when considering the need on a statewide basis 731
and without regard to the Long-Term Care Planning Districts in 732
which the counties are located. If there are no applications for 733
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a certificate of need for nursing facility beds in either of the 734
two (2) counties having the highest need for those beds on a 735
statewide basis by the date specified by the department, then the 736
certificate of need shall be available for nursing facility beds 737
in other counties from the state at large in descending order of 738
the need for those beds on a statewide basis, from the county with 739
the second highest need to the county with the lowest need, until 740
an application is received for nursing facility beds in an 741
eligible county from the state at large. 742
(v) If a certificate of need is authorized to be 743
issued under this paragraph (q) for nursing facility beds in a 744
county on the basis of the need in the Long-Term Care Planning 745
District during any fiscal year of the four-year period, a 746
certificate of need shall not also be available under this 747
paragraph (q) for additional nursing facility beds in that county 748
on the basis of the need in the state at large, and that county 749
shall be excluded in determining which counties have the highest 750
need for nursing facility beds in the state at large for that 751
fiscal year. After a certificate of need has been issued under 752
this paragraph (q) for nursing facility beds in a county during 753
any fiscal year of the four-year period, a certificate of need 754
shall not be available again under this paragraph (q) for 755
additional nursing facility beds in that county during the 756
four-year period, and that county shall be excluded in determining 757
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which counties have the highest need for nursing facility beds in 758
succeeding fiscal years. 759
(vi) If more than one (1) application is made for 760
a certificate of need for nursing home facility beds available 761
under this paragraph (q), in Yalobusha, Newton or Tallahatchie 762
County, and one (1) of the applicants is a county-owned hospital 763
located in the county where the nursing facility beds are 764
available, the department shall give priority to the county-owned 765
hospital in granting the certificate of need if the following 766
conditions are met: 767
1. The county-owned hospital fully meets all 768
applicable criteria and standards required to obtain a certificate 769
of need for the nursing facility beds; and 770
2. The county-owned hospital's qualifications 771
for the certificate of need, as shown in its application and as 772
determined by the department, are at least equal to the 773
qualifications of the other applicants for the certificate of 774
need. 775
(r) (i) Beginning on July 1, 1999, the State 776
Department of Health shall issue certificates of need during each 777
of the next two (2) fiscal years for the construction or expansion 778
of nursing facility beds or the conversion of other beds to 779
nursing facility beds in each of the four (4) Long-Term Care 780
Planning Districts designated in the fiscal year 1999 State Health 781
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Plan, to provide care exclusively to patients with Alzheimer's 782
disease. 783
(ii) Not more than twenty (20) beds may be 784
authorized by any certificate of need issued under this paragraph 785
(r), and not more than a total of sixty (60) beds may be 786
authorized in any Long-Term Care Planning District by all 787
certificates of need issued under this paragraph (r). However, 788
the total number of beds that may be authorized by all 789
certificates of need issued under this paragraph (r) during any 790
fiscal year shall not exceed one hundred twenty (120) beds, and 791
the total number of beds that may be authorized in any Long-Term 792
Care Planning District during any fiscal year shall not exceed 793
forty (40) beds. Of the certificates of need that are issued for 794
each Long-Term Care Planning District during the next two (2) 795
fiscal years, at least one (1) shall be issued for beds in the 796
northern part of the district, at least one (1) shall be issued 797
for beds in the central part of the district, and at least one (1) 798
shall be issued for beds in the southern part of the district. 799
(iii) The State Department of Health, in 800
consultation with the Department of Mental Health and the Division 801
of Medicaid, shall develop and prescribe the staffing levels, 802
space requirements and other standards and requirements that must 803
be met with regard to the nursing facility beds authorized under 804
this paragraph (r) to provide care exclusively to patients with 805
Alzheimer's disease. 806
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(s) The State Department of Health may issue a 807
certificate of need to a nonprofit skilled nursing facility using 808
the Green House model of skilled nursing care and located in Yazoo 809
City, Yazoo County, Mississippi, for the construction, expansion 810
or conversion of not more than nineteen (19) nursing facility 811
beds. For purposes of this paragraph (s), the provisions of 812
Section 41-7-193(1) requiring substantial compliance with the 813
projection of need as reported in the current State Health Plan 814
and the provisions of Section 41-7-197 requiring a formal 815
certificate of need hearing process are waived. There shall be no 816
prohibition or restrictions on participation in the Medicaid 817
program for the person receiving the certificate of need 818
authorized under this paragraph (s). 819
(t) The State Department of Health shall issue 820
certificates of need to the owner of a nursing facility in 821
operation at the time of Hurricane Katrina in Hancock County that 822
was not operational on December 31, 2005, because of damage 823
sustained from Hurricane Katrina to authorize the following: (i) 824
the construction of a new nursing facility in Harrison County; 825
(ii) the relocation of forty-nine (49) nursing facility beds from 826
the Hancock County facility to the new Harrison County facility; 827
(iii) the establishment of not more than twenty (20) non-Medicaid 828
nursing facility beds at the Hancock County facility; and (iv) the 829
establishment of not more than twenty (20) non-Medicaid beds at 830
the new Harrison County facility. The certificates of need that 831
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authorize the non-Medicaid nursing facility beds under 832
subparagraphs (iii) and (iv) of this paragraph (t) shall be 833
subject to the following conditions: The owner of the Hancock 834
County facility and the new Harrison County facility must agree in 835
writing that no more than fifty (50) of the beds at the Hancock 836
County facility and no more than forty-nine (49) of the beds at 837
the Harrison County facility will be certified for participation 838
in the Medicaid program, and that no claim will be submitted for 839
Medicaid reimbursement for more than fifty (50) patients in the 840
Hancock County facility in any month, or for more than forty-nine 841
(49) patients in the Harrison County facility in any month, or for 842
any patient in either facility who is in a bed that is not 843
Medicaid-certified. This written agreement by the owner of the 844
nursing facilities shall be a condition of the issuance of the 845
certificates of need under this paragraph (t), and the agreement 846
shall be fully binding on any later owner or owners of either 847
facility if the ownership of either facility is transferred at any 848
time after the certificates of need are issued. After this 849
written agreement is executed, the Division of Medicaid and the 850
State Department of Health shall not certify more than fifty (50) 851
of the beds at the Hancock County facility or more than forty-nine 852
(49) of the beds at the Harrison County facility for participation 853
in the Medicaid program. If the Hancock County facility violates 854
the terms of the written agreement by admitting or keeping in the 855
facility on a regular or continuing basis more than fifty (50) 856
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patients who are participating in the Medicaid program, or if the 857
Harrison County facility violates the terms of the written 858
agreement by admitting or keeping in the facility on a regular or 859
continuing basis more than forty-nine (49) patients who are 860
participating in the Medicaid program, the State Department of 861
Health shall revoke the license of the facility that is in 862
violation of the agreement, at the time that the department 863
determines, after a hearing complying with due process, that the 864
facility has violated the agreement. 865
(u) The State Department of Health shall issue a 866
certificate of need to a nonprofit venture for the establishment, 867
construction and operation of a skilled nursing facility of not 868
more than sixty (60) beds to provide skilled nursing care for 869
ventilator dependent or otherwise medically dependent pediatric 870
patients who require medical and nursing care or rehabilitation 871
services to be located in a county in which an academic medical 872
center and a children's hospital are located, and for any 873
construction and for the acquisition of equipment related to those 874
beds. The facility shall be authorized to keep such ventilator 875
dependent or otherwise medically dependent pediatric patients 876
beyond age twenty-one (21) in accordance with regulations of the 877
State Board of Health. For purposes of this paragraph (u), the 878
provisions of Section 41-7-193(1) requiring substantial compliance 879
with the projection of need as reported in the current State 880
Health Plan are waived, and the provisions of Section 41-7-197 881
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requiring a formal certificate of need hearing process are waived. 882
The beds authorized by this paragraph shall be counted as 883
pediatric skilled nursing facility beds for health planning 884
purposes under Section 41-7-171 et seq. There shall be no 885
prohibition of or restrictions on participation in the Medicaid 886
program for the person receiving the certificate of need 887
authorized by this paragraph. 888
(3) The State Department of Health may grant approval for 889
and issue certificates of need to any person proposing the new 890
construction of, addition to, conversion of beds of or expansion 891
of any health care facility defined in subparagraph (x) 892
(psychiatric residential treatment facility) of Section 893
41-7-173(h). The total number of beds which may be authorized by 894
such certificates of need shall not exceed three hundred 895
thirty-four (334) beds for the entire state. 896
(a) Of the total number of beds authorized under this 897
subsection, the department shall issue a certificate of need to a 898
privately owned psychiatric residential treatment facility in 899
Simpson County for the conversion of sixteen (16) intermediate 900
care facility for individuals with intellectual disabilities 901
(ICF-IID) beds to psychiatric residential treatment facility beds, 902
provided that facility agrees in writing that the facility shall 903
give priority for the use of those sixteen (16) beds to 904
Mississippi residents who are presently being treated in 905
out-of-state facilities. 906
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(b) Of the total number of beds authorized under this 907
subsection, the department may issue a certificate or certificates 908
of need for the construction or expansion of psychiatric 909
residential treatment facility beds or the conversion of other 910
beds to psychiatric residential treatment facility beds in Warren 911
County, not to exceed sixty (60) psychiatric residential treatment 912
facility beds, provided that the facility agrees in writing that 913
no more than thirty (30) of the beds at the psychiatric 914
residential treatment facility will be certified for participation 915
in the Medicaid program (Section 43-13-101 et seq.) for the use of 916
any patients other than those who are participating only in the 917
Medicaid program of another state, and that no claim will be 918
submitted to the Division of Medicaid for Medicaid reimbursement 919
for more than thirty (30) patients in the psychiatric residential 920
treatment facility in any day or for any patient in the 921
psychiatric residential treatment facility who is in a bed that is 922
not Medicaid-certified. This written agreement by the recipient 923
of the certificate of need shall be a condition of the issuance of 924
the certificate of need under this paragraph, and the agreement 925
shall be fully binding on any subsequent owner of the psychiatric 926
residential treatment facility if the ownership of the facility is 927
transferred at any time after the issuance of the certificate of 928
need. After this written agreement is executed, the Division of 929
Medicaid and the State Department of Health shall not certify more 930
than thirty (30) of the beds in the psychiatric residential 931
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treatment facility for participation in the Medicaid program for 932
the use of any patients other than those who are participating 933
only in the Medicaid program of another state. If the psychiatric 934
residential treatment facility violates the terms of the written 935
agreement by admitting or keeping in the facility on a regular or 936
continuing basis more than thirty (30) patients who are 937
participating in the Mississippi Medicaid program, the State 938
Department of Health shall revoke the license of the facility, at 939
the time that the department determines, after a hearing complying 940
with due process, that the facility has violated the condition 941
upon which the certificate of need was issued, as provided in this 942
paragraph and in the written agreement. 943
The State Department of Health, on or before July 1, 2002, 944
shall transfer the certificate of need authorized under the 945
authority of this paragraph (b), or reissue the certificate of 946
need if it has expired, to River Region Health System. 947
(c) Of the total number of beds authorized under this 948
subsection, the department shall issue a certificate of need to a 949
hospital currently operating Medicaid-certified acute psychiatric 950
beds for adolescents in DeSoto County, for the establishment of a 951
forty-bed psychiatric residential treatment facility in DeSoto 952
County. There shall be no prohibition or restrictions on 953
participation in the Medicaid program (Section 43-13-101 et seq.) 954
for the person(s) receiving the certificate of need authorized 955
under this paragraph (c) or for the beds converted pursuant to the 956
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authority of that certificate of need that would not apply to any 957
other psychiatric residential treatment facility. 958
(d) Of the total number of beds authorized under this 959
subsection, the department may issue a certificate or certificates 960
of need for the construction or expansion of psychiatric 961
residential treatment facility beds or the conversion of other 962
beds to psychiatric treatment facility beds, not to exceed thirty 963
(30) psychiatric residential treatment facility beds, in either 964
Alcorn, Tishomingo, Prentiss, Lee, Itawamba, Monroe, Chickasaw, 965
Pontotoc, Calhoun, Lafayette, Union, Benton or Tippah County. 966
(e) Of the total number of beds authorized under this 967
subsection (3) the department shall issue a certificate of need to 968
a privately owned, nonprofit psychiatric residential treatment 969
facility in Hinds County for an eight-bed expansion of the 970
facility, provided that the facility agrees in writing that the 971
facility shall give priority for the use of those eight (8) beds 972
to Mississippi residents who are presently being treated in 973
out-of-state facilities. 974
(f) The department shall issue a certificate of need to 975
a one-hundred-thirty-four-bed specialty hospital located on 976
twenty-nine and forty-four one-hundredths (29.44) commercial acres 977
at 5900 Highway 39 North in Meridian (Lauderdale County), 978
Mississippi, for the addition, construction or expansion of 979
child/adolescent psychiatric residential treatment facility beds 980
in Lauderdale County. As a condition of issuance of the 981
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certificate of need under this paragraph, the facility shall give 982
priority in admissions to the child/adolescent psychiatric 983
residential treatment facility beds authorized under this 984
paragraph to patients who otherwise would require out-of-state 985
placement. The Division of Medicaid, in conjunction with the 986
Department of Human Services, shall furnish the facility a list of 987
all out-of-state patients on a quarterly basis. Furthermore, 988
notice shall also be provided to the parent, custodial parent or 989
guardian of each out-of-state patient notifying them of the 990
priority status granted by this paragraph. For purposes of this 991
paragraph, the provisions of Section 41-7-193(1) requiring 992
substantial compliance with the projection of need as reported in 993
the current State Health Plan are waived. The total number of 994
child/adolescent psychiatric residential treatment facility beds 995
that may be authorized under the authority of this paragraph shall 996
be sixty (60) beds. There shall be no prohibition or restrictions 997
on participation in the Medicaid program (Section 43-13-101 et 998
seq.) for the person receiving the certificate of need authorized 999
under this paragraph or for the beds converted pursuant to the 1000
authority of that certificate of need. 1001
(4) (a) From and after March 25, 2021, the department may 1002
issue a certificate of need to any person for the new construction 1003
of any hospital, psychiatric hospital or chemical dependency 1004
hospital that will contain any child/adolescent psychiatric or 1005
child/adolescent chemical dependency beds, or for the conversion 1006
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of any other health care facility to a hospital, psychiatric 1007
hospital or chemical dependency hospital that will contain any 1008
child/adolescent psychiatric or child/adolescent chemical 1009
dependency beds. There shall be no prohibition or restrictions on 1010
participation in the Medicaid program (Section 43-13-101 et seq.) 1011
for the person(s) receiving the certificate(s) of need authorized 1012
under this paragraph (a) or for the beds converted pursuant to the 1013
authority of that certificate of need. In issuing any new 1014
certificate of need for any child/adolescent psychiatric or 1015
child/adolescent chemical dependency beds, either by new 1016
construction or conversion of beds of another category, the 1017
department shall give preference to beds which will be located in 1018
an area of the state which does not have such beds located in it, 1019
and to a location more than sixty-five (65) miles from existing 1020
beds. Upon receiving 2020 census data, the department may amend 1021
the State Health Plan regarding child/adolescent psychiatric and 1022
child/adolescent chemical dependency beds to reflect the need 1023
based on new census data. 1024
(i) [Deleted] 1025
(ii) The department may issue a certificate of 1026
need for the conversion of existing beds in a county hospital in 1027
Choctaw County from acute care beds to child/adolescent chemical 1028
dependency beds. For purposes of this subparagraph (ii), the 1029
provisions of Section 41-7-193(1) requiring substantial compliance 1030
with the projection of need as reported in the current State 1031
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Health Plan are waived. The total number of beds that may be 1032
authorized under authority of this subparagraph shall not exceed 1033
twenty (20) beds. There shall be no prohibition or restrictions 1034
on participation in the Medicaid program (Section 43-13-101 et 1035
seq.) for the hospital receiving the certificate of need 1036
authorized under this subparagraph or for the beds converted 1037
pursuant to the authority of that certificate of need. 1038
(iii) The department may issue a certificate or 1039
certificates of need for the construction or expansion of 1040
child/adolescent psychiatric beds or the conversion of other beds 1041
to child/adolescent psychiatric beds in Warren County. For 1042
purposes of this subparagraph (iii), the provisions of Section 1043
41-7-193(1) requiring substantial compliance with the projection 1044
of need as reported in the current State Health Plan are waived. 1045
The total number of beds that may be authorized under the 1046
authority of this subparagraph shall not exceed twenty (20) beds. 1047
There shall be no prohibition or restrictions on participation in 1048
the Medicaid program (Section 43-13-101 et seq.) for the person 1049
receiving the certificate of need authorized under this 1050
subparagraph or for the beds converted pursuant to the authority 1051
of that certificate of need. 1052
If by January 1, 2002, there has been no significant 1053
commencement of construction of the beds authorized under this 1054
subparagraph (iii), or no significant action taken to convert 1055
existing beds to the beds authorized under this subparagraph, then 1056
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the certificate of need that was previously issued under this 1057
subparagraph shall expire. If the previously issued certificate 1058
of need expires, the department may accept applications for 1059
issuance of another certificate of need for the beds authorized 1060
under this subparagraph, and may issue a certificate of need to 1061
authorize the construction, expansion or conversion of the beds 1062
authorized under this subparagraph. 1063
(iv) The department shall issue a certificate of 1064
need to the Region 7 Mental Health/Retardation Commission for the 1065
construction or expansion of child/adolescent psychiatric beds or 1066
the conversion of other beds to child/adolescent psychiatric beds 1067
in any of the counties served by the commission. For purposes of 1068
this subparagraph (iv), the provisions of Section 41-7-193(1) 1069
requiring substantial compliance with the projection of need as 1070
reported in the current State Health Plan are waived. The total 1071
number of beds that may be authorized under the authority of this 1072
subparagraph shall not exceed twenty (20) beds. There shall be no 1073
prohibition or restrictions on participation in the Medicaid 1074
program (Section 43-13-101 et seq.) for the person receiving the 1075
certificate of need authorized under this subparagraph or for the 1076
beds converted pursuant to the authority of that certificate of 1077
need. 1078
(v) The department may issue a certificate of need 1079
to any county hospital located in Leflore County for the 1080
construction or expansion of adult psychiatric beds or the 1081
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conversion of other beds to adult psychiatric beds, not to exceed 1082
twenty (20) beds, provided that the recipient of the certificate 1083
of need agrees in writing that the adult psychiatric beds will not 1084
at any time be certified for participation in the Medicaid program 1085
and that the hospital will not admit or keep any patients who are 1086
participating in the Medicaid program in any of such adult 1087
psychiatric beds. This written agreement by the recipient of the 1088
certificate of need shall be fully binding on any subsequent owner 1089
of the hospital if the ownership of the hospital is transferred at 1090
any time after the issuance of the certificate of need. Agreement 1091
that the adult psychiatric beds will not be certified for 1092
participation in the Medicaid program shall be a condition of the 1093
issuance of a certificate of need to any person under this 1094
subparagraph (v), and if such hospital at any time after the 1095
issuance of the certificate of need, regardless of the ownership 1096
of the hospital, has any of such adult psychiatric beds certified 1097
for participation in the Medicaid program or admits or keeps any 1098
Medicaid patients in such adult psychiatric beds, the State 1099
Department of Health shall revoke the certificate of need, if it 1100
is still outstanding, and shall deny or revoke the license of the 1101
hospital at the time that the department determines, after a 1102
hearing complying with due process, that the hospital has failed 1103
to comply with any of the conditions upon which the certificate of 1104
need was issued, as provided in this subparagraph and in the 1105
written agreement by the recipient of the certificate of need. 1106
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(vi) The department may issue a certificate or 1107
certificates of need for the expansion of child psychiatric beds 1108
or the conversion of other beds to child psychiatric beds at the 1109
University of Mississippi Medical Center. For purposes of this 1110
subparagraph (vi), the provisions of Section 41-7-193(1) requiring 1111
substantial compliance with the projection of need as reported in 1112
the current State Health Plan are waived. The total number of 1113
beds that may be authorized under the authority of this 1114
subparagraph shall not exceed fifteen (15) beds. There shall be 1115
no prohibition or restrictions on participation in the Medicaid 1116
program (Section 43-13-101 et seq.) for the hospital receiving the 1117
certificate of need authorized under this subparagraph or for the 1118
beds converted pursuant to the authority of that certificate of 1119
need. 1120
(b) From and after July 1, 1990, no hospital, 1121
psychiatric hospital or chemical dependency hospital shall be 1122
authorized to add any child/adolescent psychiatric or 1123
child/adolescent chemical dependency beds or convert any beds of 1124
another category to child/adolescent psychiatric or 1125
child/adolescent chemical dependency beds without a certificate of 1126
need under the authority of subsection (1)(c) and subsection 1127
(4)(a) of this section. 1128
(5) The department may issue a certificate of need to a 1129
county hospital in Winston County for the conversion of fifteen 1130
(15) acute care beds to geriatric psychiatric care beds. 1131
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(6) The State Department of Health shall issue a certificate 1132
of need to a Mississippi corporation qualified to manage a 1133
long-term care hospital as defined in Section 41-7-173(h)(xii) in 1134
Harrison County, not to exceed eighty (80) beds, including any 1135
necessary renovation or construction required for licensure and 1136
certification, provided that the recipient of the certificate of 1137
need agrees in writing that the long-term care hospital will not 1138
at any time participate in the Medicaid program (Section 43-13-101 1139
et seq.) except as a crossover provider. This written agreement 1140
by the recipient of the certificate of need shall be fully binding 1141
on any subsequent owner of the long-term care hospital, if the 1142
ownership of the facility is transferred at any time after the 1143
issuance of the certificate of need. Agreement that the long-term 1144
care hospital will not participate in the Medicaid program except 1145
as a crossover provider shall be a condition of the issuance of a 1146
certificate of need to any person under this subsection (6), and 1147
if such long-term care hospital at any time after the issuance of 1148
the certificate of need, regardless of the ownership of the 1149
facility, participates in the Medicaid program except as a 1150
crossover provider, the State Department of Health shall revoke 1151
the certificate of need, if it is still outstanding, and shall 1152
deny or revoke the license of the long-term care hospital, at the 1153
time that the department determines, after a hearing complying 1154
with due process, that the facility has failed to comply with any 1155
of the conditions upon which the certificate of need was issued, 1156
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as provided in this subsection and in the written agreement by the 1157
recipient of the certificate of need. For purposes of this 1158
subsection, the provisions of Section 41-7-193(1) requiring 1159
substantial compliance with the projection of need as reported in 1160
the current State Health Plan are waived. This subsection (6) 1161
shall be retroactive to July 1, 2023. 1162
(7) The State Department of Health may issue a certificate 1163
of need to any hospital in the state to utilize a portion of its 1164
beds for the "swing-bed" concept. Any such hospital must be in 1165
conformance with the federal regulations regarding such swing-bed 1166
concept at the time it submits its application for a certificate 1167
of need to the State Department of Health, except that such 1168
hospital may have more licensed beds or a higher average daily 1169
census (ADC) than the maximum number specified in federal 1170
regulations for participation in the swing-bed program. Any 1171
hospital meeting all federal requirements for participation in the 1172
swing-bed program which receives such certificate of need shall 1173
render services provided under the swing-bed concept to any 1174
patient eligible for Medicare (Title XVIII of the Social Security 1175
Act) who is certified by a physician to be in need of such 1176
services, and no such hospital shall permit any patient who is 1177
eligible for both Medicaid and Medicare or eligible only for 1178
Medicaid to stay in the swing beds of the hospital for more than 1179
thirty (30) days per admission unless the hospital receives prior 1180
approval for such patient from the Division of Medicaid, Office of 1181
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the Governor. Any hospital having more licensed beds or a higher 1182
average daily census (ADC) than the maximum number specified in 1183
federal regulations for participation in the swing-bed program 1184
which receives such certificate of need shall develop a procedure 1185
to ensure that before a patient is allowed to stay in the swing 1186
beds of the hospital, there are no vacant nursing home beds 1187
available for that patient located within a fifty-mile radius of 1188
the hospital. When any such hospital has a patient staying in the 1189
swing beds of the hospital and the hospital receives notice from a 1190
nursing home located within such radius that there is a vacant bed 1191
available for that patient, the hospital shall transfer the 1192
patient to the nursing home within a reasonable time after receipt 1193
of the notice. Any hospital which is subject to the requirements 1194
of the two (2) preceding sentences of this subsection may be 1195
suspended from participation in the swing-bed program for a 1196
reasonable period of time by the State Department of Health if the 1197
department, after a hearing complying with due process, determines 1198
that the hospital has failed to comply with any of those 1199
requirements. 1200
(8) The Department of Health shall not grant approval for or 1201
issue a certificate of need to any person proposing the new 1202
construction of, addition to or expansion of a health care 1203
facility as defined in subparagraph (viii) of Section 41-7-173(h), 1204
except as hereinafter provided: The department may issue a 1205
certificate of need to a nonprofit corporation located in Madison 1206
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County, Mississippi, for the construction, expansion or conversion 1207
of not more than twenty (20) beds in a community living program 1208
for developmentally disabled adults in a facility as defined in 1209
subparagraph (viii) of Section 41-7-173(h). Effective July 1, 1210
2026, the department * * * shall issue a certificate of need to 1211
the same nonprofit corporation located in Madison County, 1212
Mississippi, for the construction, expansion or conversion 1213
of * * * an additional twenty (20) beds in a community living 1214
program for developmentally disabled adults in a facility as 1215
defined in subparagraph (viii) of Section 41-7-173(h). For 1216
purposes of this subsection (8), the provisions of Section 1217
41-7-193(1) requiring substantial compliance with the projection 1218
of need as reported in the current State Health Plan and the 1219
provisions of Section 41-7-197 requiring a formal certificate of 1220
need hearing process are waived. There shall be no prohibition or 1221
restrictions on participation in the Medicaid program for the 1222
person receiving the certificate of need authorized under this 1223
subsection (8). 1224
(9) The Department of Health shall not grant approval for or 1225
issue a certificate of need to any person proposing the 1226
establishment of, or expansion of the currently approved territory 1227
of, or the contracting to establish a home office, subunit or 1228
branch office within the space operated as a health care facility 1229
as defined in Section 41-7-173(h)(i) through (viii) by a health 1230
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care facility as defined in subparagraph (ix) of Section 1231
41-7-173(h). 1232
(10) Health care facilities owned and/or operated by the 1233
state or its agencies are exempt from the restraints in this 1234
section against issuance of a certificate of need if such addition 1235
or expansion consists of repairing or renovation necessary to 1236
comply with the state licensure law. This exception shall not 1237
apply to the new construction of any building by such state 1238
facility. This exception shall not apply to any health care 1239
facilities owned and/or operated by counties, municipalities, 1240
districts, unincorporated areas, other defined persons, or any 1241
combination thereof. 1242
(11) The new construction, renovation or expansion of or 1243
addition to any health care facility defined in subparagraph (ii) 1244
(psychiatric hospital), subparagraph (iv) (skilled nursing 1245
facility), subparagraph (vi) (intermediate care facility), 1246
subparagraph (viii) (intermediate care facility for individuals 1247
with intellectual disabilities) and subparagraph (x) (psychiatric 1248
residential treatment facility) of Section 41-7-173(h) which is 1249
owned by the State of Mississippi and under the direction and 1250
control of the State Department of Mental Health, and the addition 1251
of new beds or the conversion of beds from one category to another 1252
in any such defined health care facility which is owned by the 1253
State of Mississippi and under the direction and control of the 1254
State Department of Mental Health, shall not require the issuance 1255
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of a certificate of need under Section 41-7-171 et seq., 1256
notwithstanding any provision in Section 41-7-171 et seq. to the 1257
contrary. 1258
(12) The new construction, renovation or expansion of or 1259
addition to any veterans homes or domiciliaries for eligible 1260
veterans of the State of Mississippi as authorized under Section 1261
35-1-19 shall not require the issuance of a certificate of need, 1262
notwithstanding any provision in Section 41-7-171 et seq. to the 1263
contrary. 1264
(13) The repair or the rebuilding of an existing, operating 1265
health care facility that sustained significant damage from a 1266
natural disaster that occurred after April 15, 2014, in an area 1267
that is proclaimed a disaster area or subject to a state of 1268
emergency by the Governor or by the President of the United States 1269
shall be exempt from all of the requirements of the Mississippi 1270
Certificate of Need Law (Section 41-7-171 et seq.) and any and all 1271
rules and regulations promulgated under that law, subject to the 1272
following conditions: 1273
(a) The repair or the rebuilding of any such damaged 1274
health care facility must be within one (1) mile of the 1275
pre-disaster location of the campus of the damaged health care 1276
facility, except that any temporary post-disaster health care 1277
facility operating location may be within five (5) miles of the 1278
pre-disaster location of the damaged health care facility; 1279
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(b) The repair or the rebuilding of the damaged health 1280
care facility (i) does not increase or change the complement of 1281
its bed capacity that it had before the Governor's or the 1282
President's proclamation, (ii) does not increase or change its 1283
levels and types of health care services that it provided before 1284
the Governor's or the President's proclamation, and (iii) does not 1285
rebuild in a different county; however, this paragraph does not 1286
restrict or prevent a health care facility from decreasing its bed 1287
capacity that it had before the Governor's or the President's 1288
proclamation, or from decreasing the levels of or decreasing or 1289
eliminating the types of health care services that it provided 1290
before the Governor's or the President's proclamation, when the 1291
damaged health care facility is repaired or rebuilt; 1292
(c) The exemption from Certificate of Need Law provided 1293
under this subsection (13) is valid for only five (5) years from 1294
the date of the Governor's or the President's proclamation. If 1295
actual construction has not begun within that five-year period, 1296
the exemption provided under this subsection is inapplicable; and 1297
(d) The Division of Health Facilities Licensure and 1298
Certification of the State Department of Health shall provide the 1299
same oversight for the repair or the rebuilding of the damaged 1300
health care facility that it provides to all health care facility 1301
construction projects in the state. 1302
For the purposes of this subsection (13), "significant 1303
damage" to a health care facility means damage to the health care 1304
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facility requiring an expenditure of at least One Million Dollars 1305
($1,000,000.00). 1306
(14) The State Department of Health shall issue a 1307
certificate of need to any hospital which is currently licensed 1308
for two hundred fifty (250) or more acute care beds and is located 1309
in any general hospital service area not having a comprehensive 1310
cancer center, for the establishment and equipping of such a 1311
center which provides facilities and services for outpatient 1312
radiation oncology therapy, outpatient medical oncology therapy, 1313
and appropriate support services including the provision of 1314
radiation therapy services. The provisions of Section 41-7-193(1) 1315
regarding substantial compliance with the projection of need as 1316
reported in the current State Health Plan are waived for the 1317
purpose of this subsection. 1318
(15) The State Department of Health may authorize the 1319
transfer of hospital beds, not to exceed sixty (60) beds, from the 1320
North Panola Community Hospital to the South Panola Community 1321
Hospital. The authorization for the transfer of those beds shall 1322
be exempt from the certificate of need review process. 1323
(16) The State Department of Health shall issue any 1324
certificates of need necessary for Mississippi State University 1325
and a public or private health care provider to jointly acquire 1326
and operate a linear accelerator and a magnetic resonance imaging 1327
unit. Those certificates of need shall cover all capital 1328
expenditures related to the project between Mississippi State 1329
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University and the health care provider, including, but not 1330
limited to, the acquisition of the linear accelerator, the 1331
magnetic resonance imaging unit and other radiological modalities; 1332
the offering of linear accelerator and magnetic resonance imaging 1333
services; and the cost of construction of facilities in which to 1334
locate these services. The linear accelerator and the magnetic 1335
resonance imaging unit shall be (a) located in the City of 1336
Starkville, Oktibbeha County, Mississippi; (b) operated jointly by 1337
Mississippi State University and the public or private health care 1338
provider selected by Mississippi State University through a 1339
request for proposals (RFP) process in which Mississippi State 1340
University selects, and the Board of Trustees of State 1341
Institutions of Higher Learning approves, the health care provider 1342
that makes the best overall proposal; (c) available to Mississippi 1343
State University for research purposes two-thirds (2/3) of the 1344
time that the linear accelerator and magnetic resonance imaging 1345
unit are operational; and (d) available to the public or private 1346
health care provider selected by Mississippi State University and 1347
approved by the Board of Trustees of State Institutions of Higher 1348
Learning one-third (1/3) of the time for clinical, diagnostic and 1349
treatment purposes. For purposes of this subsection, the 1350
provisions of Section 41-7-193(1) requiring substantial compliance 1351
with the projection of need as reported in the current State 1352
Health Plan are waived. 1353
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(17) The State Department of Health shall issue a 1354
certificate of need for the construction of an acute care hospital 1355
in Kemper County, not to exceed twenty-five (25) beds, which shall 1356
be named the "John C. Stennis Memorial Hospital." In issuing the 1357
certificate of need under this subsection, the department shall 1358
give priority to a hospital located in Lauderdale County that has 1359
two hundred fifteen (215) beds. For purposes of this subsection, 1360
the provisions of Section 41-7-193(1) requiring substantial 1361
compliance with the projection of need as reported in the current 1362
State Health Plan and the provisions of Section 41-7-197 requiring 1363
a formal certificate of need hearing process are waived. There 1364
shall be no prohibition or restrictions on participation in the 1365
Medicaid program (Section 43-13-101 et seq.) for the person or 1366
entity receiving the certificate of need authorized under this 1367
subsection or for the beds constructed under the authority of that 1368
certificate of need. 1369
(18) The planning, design, construction, renovation, 1370
addition, furnishing and equipping of a clinical research unit at 1371
any health care facility defined in Section 41-7-173(h) that is 1372
under the direction and control of the University of Mississippi 1373
Medical Center and located in Jackson, Mississippi, and the 1374
addition of new beds or the conversion of beds from one (1) 1375
category to another in any such clinical research unit, shall not 1376
require the issuance of a certificate of need under Section 1377
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41-7-171 et seq., notwithstanding any provision in Section 1378
41-7-171 et seq. to the contrary. 1379
(19) [Repealed] 1380
(20) Nothing in this section or in any other provision of 1381
Section 41-7-171 et seq. shall prevent any nursing facility from 1382
designating an appropriate number of existing beds in the facility 1383
as beds for providing care exclusively to patients with 1384
Alzheimer's disease. 1385
(21) Nothing in this section or any other provision of 1386
Section 41-7-171 et seq. shall prevent any health care facility 1387
from the new construction, renovation, conversion or expansion of 1388
new beds in the facility designated as intensive care units, 1389
negative pressure rooms, or isolation rooms pursuant to the 1390
provisions of Sections 41-14-1 through 41-14-11, or Section 1391
41-14-31. For purposes of this subsection, the provisions of 1392
Section 41-7-193(1) requiring substantial compliance with the 1393
projection of need as reported in the current State Health Plan 1394
and the provisions of Section 41-7-197 requiring a formal 1395
certificate of need hearing process are waived. 1396
(22) Except as provided in this subsection (22), the 1397
University of Mississippi Medical Center shall comply with all of 1398
the provisions of Section 41-7-171 et seq. 1399
The University of Mississippi Medical Center need not obtain 1400
a certificate of need for any hospital beds, services, health care 1401
facilities, or medical equipment that have been approved and 1402
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continuously operated under a certificate of need exemption for a 1403
teaching hospital, or that are approved or applied for before 1404
February 4, 2026, as long as they do not undergo a physical 1405
relocation. 1406
From and after February 4, 2026, the University of 1407
Mississippi Medical Center has an academic exemption from the 1408
certificate of need requirements of Section 41-7-171 et seq. only 1409
within the following area in the City of Jackson, Mississippi: 1410
starting at the intersection of Livingston Road and Woodrow Wilson 1411
Avenue, proceeding east along the south curb line of Woodrow 1412
Wilson Avenue until it intersects the west curb line of U.S. 1413
Interstate 55, proceeding north along the west curb line of U.S. 1414
Interstate 55 until it intersects the north curb line of Lakeland 1415
Drive, proceeding west along the north curb line of Lakeland Drive 1416
and extending such curb line west until it intersects Livingston 1417
Road, and proceeding south along the west curb line of Livingston 1418
Road to the point of origin. 1419
In order to qualify for an academic exemption, under this 1420
subsection, the State Health Officer must determine that the 1421
proposed equipment or facility fulfills a substantial and 1422
meaningful academic function. 1423
(23) (a) The State Department of Health shall conduct a 1424
study to review and make recommendations regarding Section 1425
41-7-171 et seq., to be specifically focused on the following 1426
topics: 1427
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(i) The feasibility of exempting small hospitals 1428
from the requirement for a certificate of need for the placement 1429
of dialysis units to reduce the number of transfers for patients 1430
requiring dialysis; 1431
(ii) The feasibility of exempting small hospitals 1432
from the requirement for a certificate of need to operate 1433
geriatric psychiatric units; and 1434
(iii) The feasibility of a new requirement that 1435
acute adult psychiatric units treat a certain percentage of 1436
uninsured patients or pay a periodic fee in lieu thereof. 1437
(b) The department shall make a final report of its 1438
findings and recommendations, including any recommended 1439
legislation and funding needs, to the Legislature before December 1440
1, 2026. 1441
(24) A certificate of need shall not be required to conduct 1442
or undertake any activity in Issaquena County or Humphreys County 1443
that would otherwise require the issuance of a certificate of need 1444
under Section 41-7-171 et seq., except that the provisions of 1445
subsections (2), (3), (8) and (9) of this section shall apply to 1446
activities in those counties. Such exemption shall not apply: 1447
(a) To any entity to establish a licensed hospital 1448
within thirty-five (35) miles of another licensed hospital; or 1449
(b) If such exemption would otherwise jeopardize a 1450
licensed hospital's federal critical access hospital designation. 1451
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SECTION 4. Section 41-7-201, Mississippi Code of 1972, is 1452
amended as follows: 1453
41-7-201. (1) The provisions of this subsection (1) shall 1454
apply to any party appealing any final order of the State 1455
Department of Health pertaining to a certificate of need for a 1456
home health agency, as defined in Section 41-7-173(h)(ix): 1457
(a) In addition to other remedies now available at law 1458
or in equity, any party aggrieved by any such final order of the 1459
State Department of Health shall have the right of appeal to the 1460
Chancery Court of the First Judicial District of Hinds County, 1461
Mississippi, which appeal must be filed within thirty (30) days 1462
after the date of the final order. Provided, however, that any 1463
appeal of an order disapproving an application for such a 1464
certificate of need may be made to the chancery court of the 1465
county where the proposed construction, expansion or alteration 1466
was to be located or the new service or purpose of the capital 1467
expenditure was to be located. Such appeal must be filed in 1468
accordance with the thirty (30) days for filing as heretofore 1469
provided. Any appeal shall state briefly the nature of the 1470
proceedings before the State Department of Health and shall 1471
specify the order complained of. Any appeal shall state briefly 1472
the nature of the proceedings before the State Department of 1473
Health and shall specify the order complained of. Any person 1474
whose rights may be materially affected by the action of the State 1475
Department of Health may appear and become a party or the court 1476
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may, upon motion, order that any such person, organization or 1477
entity be joined as a necessary party. 1478
(b) Upon the filing of such an appeal, the clerk of the 1479
chancery court shall serve notice thereof upon the State 1480
Department of Health, whereupon the State Department of Health 1481
shall, within thirty (30) days or within such additional time as 1482
the court may by order for cause allow from the service of such 1483
notice, certify to the chancery court the record in the case, 1484
which records shall include a transcript of all testimony, 1485
together with all exhibits or copies thereof, all pleadings, 1486
proceedings, orders, findings and opinions entered in the case; 1487
provided, however, that the parties and the State Department of 1488
Health may stipulate that a specified portion only of the record 1489
shall be certified to the court as the record on appeal. 1490
(c) The court may dispose of the appeal in termtime or 1491
vacation and may sustain or dismiss the appeal, modify or vacate 1492
the order complained of, in whole or in part, as the case may be; 1493
but in case the order is wholly or partly vacated, the court may 1494
also, in its discretion, remand the matter to the State Department 1495
of Health for such further proceedings, not inconsistent with the 1496
court's order, as, in the opinion of the court, justice may 1497
require. The order shall not be vacated or set aside, either in 1498
whole or in part, except for errors of law, unless the court finds 1499
that the order of the State Department of Health is not supported 1500
by substantial evidence, is contrary to the manifest weight of the 1501
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evidence, is in excess of the statutory authority or jurisdiction 1502
of the State Department of Health, or violates any vested 1503
constitutional rights of any party involved in the appeal. 1504
Provided, however, an order of the chancery court reversing the 1505
denial of a certificate of need by the State Department of Health 1506
shall not entitle the applicant to effectuate the certificate of 1507
need until either: 1508
(i) Such order of the chancery court has become 1509
final and has not been appealed to the Supreme Court; or 1510
(ii) The Supreme Court has entered a final order 1511
affirming the chancery court. 1512
(d) Appeals in accordance with law may be had to the 1513
Supreme Court of the State of Mississippi from any final judgment 1514
of the chancery court. 1515
(2) The provisions of this subsection (2) shall apply to any 1516
party appealing any final order of the State Department of Health 1517
pertaining to a certificate of need for any health care facility 1518
as defined in Section 41-7-173(h), with the exception of any home 1519
health agency as defined in Section 41-7-173(h)(ix): 1520
(a) There shall be a "stay of proceedings" of any final 1521
order issued by the State Department of Health pertaining to the 1522
issuance of a certificate of need for the establishment, 1523
construction, expansion or replacement of a health care facility 1524
for a period of thirty (30) days from the date of the order, if an 1525
existing provider located in the same service area where the 1526
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health care facility is or will be located has requested a hearing 1527
during the course of review in opposition to the issuance of the 1528
certificate of need. The stay of proceedings shall expire at the 1529
termination of thirty (30) days; however, no construction, 1530
renovation or other capital expenditure that is the subject of the 1531
order shall be undertaken, no license to operate any facility that 1532
is the subject of the order shall be issued by the licensing 1533
agency, and no certification to participate in the Title XVII or 1534
Title XIX programs of the Social Security Act shall be granted, 1535
until all statutory appeals have been exhausted or the time for 1536
such appeals has expired. Notwithstanding the foregoing, the 1537
filing of an appeal from a final order of the State Department of 1538
Health or the chancery court for the issuance of a certificate of 1539
need shall not prevent the purchase of medical equipment or 1540
development or offering of institutional health services granted 1541
in a certificate of need issued by the State Department of Health. 1542
(b) In addition to other remedies now available at law 1543
or in equity, any party aggrieved by such final order of the State 1544
Department of Health shall have the right of appeal to the 1545
Chancery Court of the First Judicial District of Hinds County, 1546
Mississippi, which appeal must be filed within twenty (20) days 1547
after the date of the final order. Provided, however, that any 1548
appeal of an order disapproving an application for such a 1549
certificate of need may be made to the chancery court of the 1550
county where the proposed construction, expansion or alteration 1551
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was to be located or the new service or purpose of the capital 1552
expenditure was to be located. Such appeal must be filed in 1553
accordance with the twenty (20) days for filing as heretofore 1554
provided. Any appeal shall state briefly the nature of the 1555
proceedings before the State Department of Health and shall 1556
specify the order complained of. 1557
(c) Upon the filing of such an appeal, the clerk of the 1558
chancery court shall serve notice thereof upon the State 1559
Department of Health, whereupon the State Department of Health 1560
shall, within thirty (30) days of the date of the filing of the 1561
appeal, certify to the chancery court the record in the case, 1562
which records shall include a transcript of all testimony, 1563
together with all exhibits or copies thereof, all proceedings, 1564
orders, findings and opinions entered in the case; provided, 1565
however, that the parties and the State Department of Health may 1566
stipulate that a specified portion only of the record shall be 1567
certified to the court as the record on appeal. The chancery 1568
court shall give preference to any such appeal from a final order 1569
by the State Department of Health in a certificate of need 1570
proceeding, and shall render a final order regarding such appeal 1571
no later than one hundred twenty (120) days from the date of the 1572
final order by the State Department of Health. If the chancery 1573
court has not rendered a final order within this 1574
one-hundred-twenty-day period, then the final order of the State 1575
Department of Health shall be deemed to have been affirmed by the 1576
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chancery court, and any party to the appeal shall have the right 1577
to appeal from the chancery court to the Supreme Court on the 1578
record certified by the State Department of Health as otherwise 1579
provided in paragraph (g) of this subsection. In the event the 1580
chancery court has not rendered a final order within the 1581
one-hundred-twenty-day period and an appeal is made to the Supreme 1582
Court as provided herein, the Supreme Court shall remand the case 1583
to the chancery court to make an award of costs, fees, reasonable 1584
expenses and attorney's fees incurred in favor of appellee payable 1585
by the appellant(s) should the Supreme Court affirm the order of 1586
the State Department of Health. 1587
(d) Any appeal of a final order by the State Department 1588
of Health in a certificate of need proceeding shall require the 1589
giving of a bond by the appellant(s) sufficient to secure the 1590
appellee against the loss of costs, fees, expenses and attorney's 1591
fees incurred in defense of the appeal, approved by the chancery 1592
court within five (5) days of the date of filing the appeal. 1593
(e) No new or additional evidence shall be introduced 1594
in the chancery court but the case shall be determined upon the 1595
record certified to the court. 1596
(f) The court may dispose of the appeal in termtime or 1597
vacation and may sustain or dismiss the appeal, modify or vacate 1598
the order complained of in whole or in part and may make an award 1599
of costs, fees, expenses and attorney's fees, as the case may be; 1600
but in case the order is wholly or partly vacated, the court may 1601
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also, in its discretion, remand the matter to the State Department 1602
of Health for such further proceedings, not inconsistent with the 1603
court's order, as, in the opinion of the court, justice may 1604
require. The court, as part of the final order, shall make an 1605
award of costs, fees, reasonable expenses and attorney's fees 1606
incurred in favor of appellee payable by the appellant(s) should 1607
the court affirm the order of the State Department of Health. The 1608
order shall not be vacated or set aside, either in whole or in 1609
part, except for errors of law, unless the court finds that the 1610
order of the State Department of Health is not supported by 1611
substantial evidence, is contrary to the manifest weight of the 1612
evidence, is in excess of the statutory authority or jurisdiction 1613
of the State Department of Health, or violates any vested 1614
constitutional rights of any party involved in the appeal. 1615
Provided, however, an order of the chancery court reversing the 1616
denial of a certificate of need by the State Department of Health 1617
shall not entitle the applicant to effectuate the certificate of 1618
need until either: 1619
(i) Such order of the chancery court has become 1620
final and has not been appealed to the Supreme Court; or 1621
(ii) The Supreme Court has entered a final order 1622
affirming the chancery court. 1623
(g) Appeals in accordance with law may be had to the 1624
Supreme Court of the State of Mississippi from any final judgment 1625
of the chancery court. The Supreme Court must give preference and 1626
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conduct an expedited judicial review of an appeal of a final order 1627
of the chancery court relating to a certificate of need proceeding 1628
and must render a final order regarding the appeal no later than 1629
one hundred twenty (120) days from the date the final order by the 1630
chancery court is certified to the Supreme Court. The Supreme 1631
Court shall consider such appeals in an expeditious manner without 1632
regard to position on the court docket. 1633
(h) Within thirty (30) days from the date of a final 1634
order by the Supreme Court or a final order of the chancery court 1635
not appealed to the Supreme Court that modifies or wholly or 1636
partly vacates the final order of the State Department of Health 1637
granting a certificate of need, the State Department of Health 1638
shall issue another order in conformity with the final order of 1639
the Supreme Court, or the final order of the chancery court not 1640
appealed to the Supreme Court. 1641
(3) The provisions of this subsection (3) shall apply to any 1642
party appealing any final order of the State Department of Health 1643
pertaining to a certificate of need for any health care facility 1644
as defined in Section 41-7-173(h). Beginning July 1, 2026, any 1645
party aggrieved by the final order of the State Department of 1646
Health to approve an application for a certificate of need that 1647
exercises the right of appeal to the Chancery Court of the First 1648
Judicial District of Hinds County, Mississippi, under subsection 1649
(1) or (2) of this section, including any additional appeal to the 1650
Supreme Court of the State of Mississippi, shall be required to 1651
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ST: Small Community Hospital Pilot Program;
establish.
reimburse the applicant whose application was approved for all 1652
reasonable attorney, consultant and other fees related to the 1653
appeal if such final order is not vacated or set aside by the 1654
chancery court or by the Supreme Court of the State of 1655
Mississippi. 1656
SECTION 5. This act shall take effect and be in force from 1657
and after its passage. 1658