Bill Text: HI HCR9 | 2016 | Regular Session | Introduced
Bill Title: Certificate of Need Program; Auditor Study
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2016-04-08 - Referred to CPH, WAM. [HCR9 Detail]
Download: Hawaii-2016-HCR9-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.C.R. NO. |
9 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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HOUSE CONCURRENT
RESOLUTION
REQUESTING THE AUDITOR TO CONDUCT A STUDY OF THE RELEVANCY OF THE CERTIFICATE OF NEED PROCESS UNDER CHAPTER 323D, Hawaii revised statutes.
WHEREAS, Certificate of Need (CON) programs are state-level regulatory programs that require approval from a state health planning agency for construction, expansion, and major capital expenditures by health care facilities and services; and
WHEREAS, Hawaii's CON law, codified in part V of chapter 323D, Hawaii Revised Statutes, was established in 1975 in response to the National Health Planning and Resources Development Act of 1974 (NHPRDA), which conditioned the award of federal Public Health Service grants upon a state's adoption of such regulatory measures; and
WHEREAS, in 1987, the federal mandate and funding provisions were repealed; and
WHEREAS, since the repeal of NHPRDA, 14 states have dropped their CON programs while several other states have narrowed the application of their laws to only certain types of facilities; and
WHEREAS, Hawaii's law requires the State Health Planning and Development Agency to approve a certificate of need for construction, expansion, alteration, conversion, development, initiation, or modification of all health care facilities or health care services in the State; and
WHEREAS, like many other state CON laws, Hawaii's CON law is intended to provide a coordinated system that links statewide planning for health services with facilities development; and
WHEREAS, Hawaii's CON program, like other programs nationwide, has been criticized on several bases, including:
(1) It hampers the efficient performance of healthcare markets by creating barriers to entry and expansion, restricting free and open competition, limiting consumer choice, and resulting in higher prices;
(2) It hampers innovation and improvements in the delivery of better healthcare by limiting competition;
(3) It is not consistently administered; and
(4) It does not achieve its objective of controlling healthcare costs; and
WHEREAS, national health care reform and other changes taking place in the health care marketplace make it appropriate to examine the relevancy of Hawaii's CON program and its effects on health care access, quality, and costs; now, therefore,
BE IT RESOLVED by the House of Representatives of the Twenty-eighth Legislature of the State of Hawaii, Regular Session of 2016, the Senate concurring, that the Auditor is requested to conduct a study of the relevancy of the CON process under Chapter 323D, Hawaii Revised Statutes, with respect to:
(1) The role of the CON Program;
(2) The effects of the CON law on:
(A) Improving the health of residents within a health service area;
(B) Increasing the accessibility and quality of health services;
(C) Containing health care costs; and
(D) Preventing unnecessary duplication of health services; and
(3) Whether certain facilities, types of facilities, or services should be exempt from the CON process; and
BE IT FURTHER RESOLVED that the Auditor is requested to make appropriate recommendations to eliminate or modify the CON process; and
BE IT FURTHER RESOLVED that the Auditor is requested to submit findings and recommendations with regard to the CON process, including any necessary proposed legislation, to the Legislature no later than 20 days before the convening of the Regular Session of 2017; and
BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Acting State Auditor, Director of Health, and Administrator of the State Health Planning and Development Agency.
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OFFERED BY: |
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Certificate of Need Program; Auditor Study
