South Carolina H 5173: Stephen Scott

Bill Text

2025-2026 Bill 5173 Text of Previous Version (Apr. 02, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 5173

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

Committee Report

April 2, 2026

H. 5173

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

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

Read the first time February 11, 2026

________

The committee on House Ways and 
Means

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

Report:

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

B.W. BANNISTER for Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

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

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

State Revenue

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

Local Expenditure

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

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

_______

A bill

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

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

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

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

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

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

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

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

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

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This web page was last updated on April 02, 2026 at 04:14 PM