IndianaSB 225Second Regular Session 124th General Assembly (2026)SenateWALLET

Health matters.

Sponsored By: Sponsor information unavailable

Signed by Governor

Summary

Amends the definition of "ambulatory outpatient surgical center" to remove the requirement that a surgical procedure is permitted to be performed only by a physician, dentist, or podiatrist who has certain hospital privileges. Prohibits a hospital, debt collector, or other third party from pursuing medical debt collection if the hospital is noncompliant with specified statutes. Requires the Indiana department of health (state department) to determine on a semiannual basis whether a hospital is in compliance with the statutes and notify a hospital concerning the state department's compliance determination. Authorizes the attorney general to suspend the authority of a hospital to pursue medical debt collection when the state department has made a final determination that the hospital is noncompliant. Creates an affirmative defense for a debtor if the collection attempt occurred while the hospital was noncompliant. Requires a hospital to provide the state department with 60 days written notice if the hospital plans to: (1) close and permanently terminate all hospital operations; or (2) completely eliminate a service line for longer than 90 days. Allows for a waiver of the notification requirements in specified circumstances.

health and provider servicesthe housepublic health

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

New protections against hospital debt collection

Beginning July 1, 2026, hospitals and their collectors cannot collect covered medical debt while hospitals violate applicable state hospital requirements. These include the new hospital closure notice rules. Covered debt must be incurred after June 30, 2026, and be at least 120 days overdue. It covers care, products, or devices provided by or in a hospital. Debt bought by, payable to, or owed to financial institutions or their assignees is excluded. The Indiana Department of Health checks compliance twice yearly, notifies hospitals, and publicly lists noncompliant hospitals. It reports final findings to the Attorney General. After a final finding, the Attorney General can suspend collection unless an administrative review is pending. Suspension ends when the department determines the hospital has corrected the violation. Enforcement also includes restitution and civil penalties up to $10,000 per violation. You can use a final noncompliance finding as a defense against collection during the noncompliance period. If a violation injures you, you can sue for actual damages, up to $1,000 in statutory damages, and a court order stopping violations.

Hospitals must give advance closure notice

Beginning July 1, 2026, hospitals must give the Indiana Department of Health at least 60 days' written notice before permanently closing. The same notice applies before completely ending a service line for more than 90 days. Notices must give the planned date, affected services and capacity, and plans for patients to continue receiving care. Within 10 days, the department must post a summary online and notify affected state agencies. Hospitals can request waivers for natural disasters, catastrophic facility failures, or other emergencies beyond their control. The department can also grant waivers to protect public health and safety. It must post waivers and explain them. Violations can bring civil penalties up to $10,000. The law requires notice and care planning, but does not prevent closures.

Surgery centers get broader staffing options

Beginning July 1, 2026, outpatient surgery center practitioners no longer need hospital surgical privileges in the same or an adjacent county. Physicians, dentists, and podiatrists must still be trained, legally authorized, and admitted to the center's open staff. The law also sets out operating and safety standards for these centers. Centers must have physician supervision, or supervision by an affiliated hospital's governing board. Except for local anesthesia, a specially trained physician must supervise anesthesia and remain present during procedures. Centers must have an operating room, a recovery room, full-time nursing staff available, and X-ray and laboratory testing capabilities. Stays cannot exceed 24 hours. Required emergency resources include a defibrillator, airway equipment, and a blood supply. Centers must have a written hospital agreement for immediate acceptance of patients needing care for complications or after surgery. Three licensed physicians without financial ties to the center must review its operations. Centers must keep adequate medical records and meet state building, equipment, health, and safety standards. Birthing centers are excluded. For purposes of Indiana's abortion-related laws, a center must also be majority-owned by a licensed hospital.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 186 • No: 2

Senate vote • 2/26/2026

Senate concurred with House amendments

Yes: 49 • No: 0

House vote • 2/23/2026

Third reading: passed

Yes: 94 • No: 1

Senate vote • 1/27/2026

Third reading: passed

Yes: 43 • No: 1

Actions Timeline

  1. Public Law 124

    3/5/2026Senate
  2. Signed by the Governor

    3/5/2026Senate
  3. Signed by the Speaker

    2/27/2026House
  4. Signed by the President Pro Tempore

    2/27/2026Senate
  5. Signed by the President of the Senate

    2/27/2026Senate
  6. Senate concurred with House amendments; Roll Call 300: yeas 49, nays 0

    2/26/2026Senate
  7. Motion to concur filed

    2/25/2026Senate
  8. Returned to the Senate with amendments

    2/24/2026House
  9. Representatives McGuire, King added as cosponsors

    2/23/2026House
  10. Third reading: passed; Roll Call 307: yeas 94, nays 1

    2/23/2026House
  11. Second reading: ordered engrossed

    2/19/2026House
  12. Committee report: amend do pass, adopted

    2/17/2026House
  13. Committee report: amend do pass, adopted

    2/10/2026House
  14. Recommitted to Committee on Ways and Means pursuant to House Rule 126.3

    2/10/2026House
  15. First reading: referred to Committee on Public Health

    1/29/2026House
  16. Referred to the House

    1/28/2026Senate
  17. Third reading: passed; Roll Call 111: yeas 43, nays 1

    1/27/2026Senate
  18. House sponsor: Representative Barrett

    1/27/2026Senate
  19. Senator Qaddoura added as third author

    1/27/2026Senate
  20. Cosponsor: Representative Carbaugh

    1/27/2026Senate
  21. Senator Yoder added as coauthor

    1/27/2026Senate
  22. Amendment #1 (Busch) prevailed; voice vote

    1/26/2026Senate
  23. Second reading: amended, ordered engrossed

    1/26/2026Senate
  24. Committee report: amend do pass, adopted

    1/22/2026Senate
  25. Senator Charbonneau added as second author

    1/12/2026Senate

Bill Text

  • Engrossed Senate Bill (H)

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

  • Senate Bill (S)

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