Report Title:

Certificate of Need; Hospital Acquisition; SHPDA

Description:

Repeals the certificate of need process and the law relating to hospital acquisition.

THE SENATE	S.B. NO.	1912
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

relating to health.

.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The purpose of this Act is to abolish the law relating to health care cost control by repealing the certificate of need process.

     SECTION 2.  Section 323D-2, Hawaii Revised Statutes, is amended as follows:

     1.  By amending the definition of "capital expenditure" to read:

     ""Capital expenditure" means any purchase or transfer of money or anything of value or enforceable promise or agreement to purchase or transfer money or anything of value incurred by or in behalf of any person for construction, expansion, alteration, conversion, development, initiation, or modification as defined in this section.  The term includes the:

     (1)  Cost of studies, surveys, designs, plans, working drawings, specifications, and other preliminaries necessary for construction, expansion, alteration, conversion, development, initiation, or modification;

     (2)  Fair market values of facilities and equipment obtained by donation or lease or comparable arrangements as though the items had been acquired by purchase; and

     (3)  Fair market values of facilities and equipment transferred for less than fair market value[, if a transfer of the facilities or equipment at fair market value would be subject to review under section 323D-43]."

     2.  By repealing the definition of "applicant".

     [""Applicant" means any person who applies for a certificate of need under part V."]

     3.  By repealing the definition of "certificate of need".

     [""Certificate of need" means an authorization, when required pursuant to section 323D-43, to construct, expand, alter, or convert a health care facility or to initiate, expand, develop, or modify a health care service."]

     4.  By repealing the definition of "review panel".

     [""Review panel" means the panel established pursuant to section 323D-42."]

     SECTION 3.  Section 323D-12, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a)  The state agency shall:

     (1)  Have as a principal function the responsibility for promoting accessibility for all the people of the State to quality health care services at reasonable cost.  The state agency shall conduct such studies and investigations as may be necessary as to the causes of health care costs including inflation.  The state agency may contract for services to implement this paragraph.  [The certificate of need program mandated under part V shall serve this function.]  The state agency shall promote the sharing of facilities or services by health care providers whenever possible to achieve economies [and shall restrict unusual or unusually costly services to individual facilities or providers where appropriate];

     (2)  Serve as staff to and provide technical assistance and advice to the statewide council and the subarea councils in the preparation, review, and revision of the state health services and facilities plan; and

     (3)  Conduct the health planning activities of the State in coordination with the subarea councils, implement the state health services and facilities plan, and determine the statewide health needs of the State after consulting with the statewide council[; and

(4) Administer the state certificate of need program pursuant to part V]."

     SECTION 4.  Section 323D-13, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  No member of the statewide council shall, in the exercise of any function of the statewide council described in section [323D-14(3),] 323D-14, vote on any matter before the statewide council respecting any individual or entity with which the member has or, within the twelve months preceding the vote, had any substantial ownership, employment, medical staff, fiduciary, contractual, creditor, or consultative relationship.  The statewide council shall require each of its members who has or has had such a relationship with an individual or entity involved in any matter before the statewide council to make a written disclosure of the relationship before any action is taken by the statewide council with respect to the matter in the exercise of any function described in section 323D-14 and to make the relationship public in any meeting in which the action is to be taken."

     SECTION 5.  Section 323D-14, Hawaii Revised Statutes, is amended to read as follows:

"§323D-14  Functions; statewide health coordinating council.  The statewide council shall:

     (1)  Prepare and revise as necessary the state health services and facilities plan;

     (2)  Advise the state agency on actions under section 323D-12;

    [(3) Appoint the review panel pursuant to section 323D-42;] and

    [(4)] (3)  Review and comment upon [the following actions by the state agency before such actions are made final:

(A) The making of findings as to applications for certificate of need; and

(B) The making of findings as to] the appropriateness of [those] institutional and noninstitutional health services offered in the State."

     SECTION 6.  Section 323D-18, Hawaii Revised Statutes, is amended to read as follows:

"§323D-18  Information required of providers.  Providers of health care doing business in the State shall submit such statistical and other reports of information related to health and health care as the state agency finds necessary to the performance of its functions.  The information deemed necessary includes but is not limited to:

     (1)  Information regarding changes in the class of usage of the bed complement of a health care facility [under section 323D-54(9)];

     (2)  Implementation of services [under section 323D-54];

     (3)  Projects that are wholly dedicated to meeting the State's obligations under court orders, including consent decrees[, under section 323D-54(10)];

     (4)  Replacement of existing equipment with an updated equivalent [under section 323D-54(11)];

     (5)  Primary care clinics under the expenditure [thresholds under section 323D-54(12);] minimums referenced in section 323D-2; and

     (6)  Equipment and services related to that equipment, that are primarily intended for research purposes as opposed to usual and customary diagnostic and therapeutic care."

     SECTION 7.  Section 323D-22, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each subarea health planning council shall review, seek public input, and make recommendations relating to health planning for the geographical subarea it serves.  In addition, the subarea health planning councils shall:

     (1)  Identify and recommend to the state agency and the council the data needs and special concerns of the respective subareas with respect to the preparation of the state plan[.];

     (2)  Provide specific recommendations to the state agency and the council regarding the highest priorities for health services and resources development[.];

     (3)  Review the state health services and facilities plan as it relates to the respective subareas and make recommendations to the state agency and the council[.];

    [(4) Advise the state agency in the administration of the certificate of need program for their respective subareas.]

    [(5)] (4)  Advise the state agency on the cost of reimbursable expenses incurred in the performance of their functions for inclusion in the state agency budget[.];

    [(6)] (5)  Advise the state agency in the performance of its specific functions[.];

    [(7)] (6)  Perform other such functions as agreed upon by the state agency and the respective subarea councils[.]; and

    [(8)] (7)  Each subarea health planning council shall recommend for gubernatorial appointment at least one person from its membership to be on the statewide council."

     SECTION 8.  Chapter 323D, Part V, Hawaii Revised Statutes, is repealed.

     SECTION 9.  Chapter 323D, Part VII, Hawaii Revised Statutes, is repealed.

     SECTION 10.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 11.  This Act shall take effect on January 1, 2008.

INTRODUCED BY:

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