Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Health Care & Wellness Committee

SB 5673

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Concerning certificates of need.

Sponsors: Senators Pridemore, Zarelli, Keiser, Murray, Rockefeller, Hobbs, Regala and Shin.

Brief Summary of Bill

  • Requires health maintenance organizations to obtain a certificate of need prior to the construction, development, establishment, sale, purchase, or lease of a hospital.

Hearing Date: 3/12/09

Staff: Jim Morishima (786-7191)

Background:

Generally, a certificate of need is required before:

When determining whether to issue a certificate of need, the Department of Health (DOH) must generally consider:

The certificate of need process is, however, different for a health maintenance organization (HMO). An HMO is subject, under certain circumstances, to the certificate of need process for "tertiary health services," which are specialized services that meet the complicated medical needs of people and require sufficient patient volume to optimize provider effectiveness, quality of service, and improved outcomes of care. When evaluating a certificate of need from an HMO, the DOH is not required to utilize the criteria it uses to evaluate other types of applications for certificates of need. Instead, the DOH must grant a certificate of need for an HMO if:

Currently, the DOH only subjects HMOs to the certificate of need process for tertiary health services. An HMO that constructs, develops, establishes, sells, purchases, or leases a hospital is not subject to the certificate of need process.

Summary of Bill:

An HMO that constructs, develops, establishes, sells, purchases, or leases a hospital is subject to the certificate of need process.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.