Subcommittee tables HB 2662 after industry opposition; bill would create oversight fund, credentialing board and database
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Summary
HB 2662, which proposes an oversight fund, an independent credentialing review board, and a statewide provider database for credentialing and Medicaid billing oversight, was laid on the table 7–0 after testimony from the Virginia Hospital and Healthcare Association expressing concern about duplication of existing regulatory functions.
Delegate Anthony presented HB 2662 and a substitute. The substitute adds a new code section (cited in the hearing text as “32.1‑1, 37.25”), directs the Department of Health to review credentialing and billing oversight processes annually, permits public‑private partnerships, and creates exceptions from oversight fees for critical access hospitals and hospitals in medically underserved areas.
The sponsor framed the bill as a response to a criminal indictment involving a regional hospital and a convicted physician, saying the measures would fill perceived gaps in credentialing and billing oversight and establish a statewide database of provider qualifications, privileges and disciplinary actions. She stressed the bill “is not accusatory” but aims to create safeguards and whistleblower protections.
Brent Rawlings of the Virginia Hospital and Healthcare Association testified in opposition. He argued the substitute duplicates existing state functions performed by licensing boards, the Medicaid Fraud Control Unit and the Office of the Attorney General and expressed concern about creating a provider‑assessment fund that effectively assesses providers to regulate them.
After discussion, the subcommittee voted 7–0 to lay the substitute on the table. The sponsor said she would continue working with the association and stakeholders.