IowaHF 91991st General Assembly (2025–2026)HouseWALLET

A bill for an act relating to children’s specialty hospital designations for certain nonprofit organizations, and including effective date provisions. (Formerly HSB 268.) Effective date: 05/01/2025.

Sponsored By: COMMITTEE ON HEALTH AND HUMAN SERVICES

Signed by Governor

health and human services

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Easier rules so kids' hospitals can open

Starting 05/01/2025, DIAL waives some hospital rules so licensed entities can keep operating during the transition. Waivers can cover lab, pathology, and emergency services not already offered. Each waiver lasts up to 24 months or until a permanent license. Entities may keep using earlier nursing‑facility building standards and are exempt from FGI hospital design rules. They are exempt from certificate‑of‑need for new or changed services to convert or revert, for up to 24 months.

Medicaid pay rules for kids' hospitals

Beginning 05/01/2025, Iowa sets Medicaid payment methods for children's specialty hospitals. Inpatient pay uses average allowable per‑day costs, adjusted for inflation (441 IAC 79.1(5)(k)). Outpatient pay uses the hospital's cost‑to‑charge ratio with later adjustments (441 IAC 79.1(1)(g)). The law sets methods, not exact dollar amounts.

New specialty hospital care for kids

Beginning 05/01/2025, Iowa creates a children's specialty hospital license. A qualifying nonprofit serves only people age 30 or younger, with over 60% on Medicaid. It specializes in pediatric rehab and complex or behavioral health needs, has no more than 200 beds, and offers outpatient care. It also must have been a 'special population nursing facility' before 07/01/2025. Within 30 days, DIAL issues a provisional license for up to 24 months to pursue federal certification and reimbursement. DIAL sets statewide licensure standards, and hospitals must keep clear medical rules for admission, discharge, and continued care.

State help to speed federal approval

From 05/01/2025, DIAL and Health and Human Services must help licensed entities seek federal certification and reimbursement. DIAL can adopt emergency rules that take effect when filed, and must also publish them as intended actions.

Sponsors & Cosponsors

Sponsor

  • COMMITTEE ON HEALTH AND HUMAN SERVICES

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 238 • No: 0

House vote 4/15/2025

Passed House

Yes: 94 • No: 0

Senate vote 4/9/2025

Passed Senate

Yes: 47 • No: 0

House vote 3/25/2025

Passed House

Yes: 97 • No: 0

Actions Timeline

  1. Signed by Governor.

    5/1/2025Governor
  2. Reported correctly enrolled, signed by Speaker and President, and sent to Governor.

    5/1/2025Senate
  3. Explanation of vote.

    4/24/2025legislature
  4. Explanation of vote.

    4/22/2025legislature
  5. Message from House.

    4/15/2025House
  6. Immediate message.

    4/15/2025legislature
  7. Passed House, yeas 94, nays 0.

    4/15/2025House
  8. House concurred in Senate amendment H-1225.

    4/15/2025Senate
  9. Senate amendment H-1225 filed.

    4/10/2025Senate
  10. Message from Senate.

    4/10/2025Senate
  11. Immediate message.

    4/9/2025legislature
  12. Passed Senate, yeas 47, nays 0.

    4/9/2025Senate
  13. Amendment S-3070 adopted.

    4/9/2025legislature
  14. Placed on calendar.

    4/7/2025legislature
  15. Amendment S-3070 filed.

    4/7/2025legislature
  16. Committee report, recommending amendment and passage.

    4/7/2025legislature
  17. Subcommittee recommends amendment and passage.

    4/1/2025legislature
  18. Subcommittee Meeting: 03/31/2025 4:00PM Senate Lounge.

    3/27/2025Senate
  19. Subcommittee: Klimesh, Pike, and Trone Garriott.

    3/27/2025legislature
  20. Referred to Health and Human Services.

    3/26/2025legislature
  21. Read first time, passed on file.

    3/25/2025legislature
  22. Message from House.

    3/25/2025House
  23. Immediate message.

    3/25/2025legislature
  24. Passed House, yeas 97, nays 0.

    3/25/2025House
  25. Amendment H-1163 adopted.

    3/25/2025legislature

Bill Text

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