SENATE BILL REPORT

SB 5886

BYSenators Wojahn, Anderson, Vognild, Stratton, Moore, Patterson and Barr

Revising provisions on certificate of need program for hospitals.

Senate Committee on Human Services & Corrections

Senate Hearing Date(s):February 23, 1987; March 3, 1987

Majority Report:  That Substitute Senate Bill No. 5886 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Wojahn, Chairman; Stratton, Vice Chairman; Anderson, Deccio, Johnson, Kiskaddon, Kreidler, Tanner.

Senate Staff:Scott Plack (786-7409)

                  March 6, 1987

AS REPORTED BY COMMITTEE ON HUMAN SERVICES & CORRECTIONS, MARCH 3,1987

BACKGROUND:

Certificate of need is a regulatory program applied to health care institutions.  Its purpose is to ensure that new health care services and facilities are needed, and that such services and facilities contribute to improved accessibility and availability of high-quality, economically efficient health care.  The State of Washington implemented its certificate of need program in 1972.  The program was later modified to comply with provisions of the National Health Planning Act of 1974 (P.L. 93-641).  More recently the program has been amended to give it a stronger cost containment emphasis.  The program is administered by Department of Social and Health Services (DSHS).

In its January 1987 report to the Senate Committee on Human Services and Corrections, the Advisory Group on Health Policy recommended changes to the present certificate of need program.  The report called for a reduction in the scope of coverage of the program.

SUMMARY:

The certificate of need program is amended to cover only the following facilities and services:  the establishment or construction of a new hospital; the purchase or lease of an existing hospital; inpatient psychiatric facilities; kidney dialysis facilities; additional nursing homes beds; home health and hospice agencies accessing federal or state reimbursement; the addition of new beds in an existing facility which involve 10 beds or 10 percent of licensed beds, which ever is less; and new tertiary services established in rule by DSHS.  The following major medical equipment is covered in all institutional settings:  positron emission tomography, brain electrical activity mapping, linear accelerator, extracorporal shock wave lithotripsy, magnetic resonance imaging, and other major equipment established in rule by DSHS.

EFFECT OF PROPOSED SUBSTITUTE:

The Certificate of Need program is amended to cover only the following facilities and services:  establishment or construction of a new hospital; the purchase, lease or sale of a majority of an existing hospital; inpatient psychiatric facilities; kidney dialysis facilities; additional nursing home beds; the addition of new beds in an existing facility; and new tertiary services established in rule by DSHS.  The following major medical equipment is covered in all institutional settings:  positron emission tomography, brain electrical activity mapping, linear accelerator, extracoporal shock wave lithotripsy, magnetic resonance imaging, and other major equipment established in rule by DSHS.

Fiscal Note:      requested

Senate Committee - Testified: Mel Sorenson, Washington State Medical Association; Chuck Bailey, Washington State Labor Council; Thelma Struck, Department of Social and Health Services; Dave Broderick, Washington State Hospital Association; Joan Gaumer, Blue Cross of Washington; Judy Klayman, Washington State Hospital Commission