With hospitals, nursing homes and hospice providers lined up in opposition, a Senate panel rejected a proposed overhaul of a key regulatory process for new health care facilities.

The Senate Health and Human Services Appropriations Subcommittee on Wednesday voted 6-2 to kill a bill (SB 1144) that would have created exemptions to the “certificate of need” process. Under that controversial process, the state must review and give approval before new health care facilities are built.

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