SENATE BILL REPORT

SB 6122

BYSenators Deccio, Barr, Johnson, West, Anderson and Conner

Exempting rural hospitals from certain certificate of need reviews.

Senate Committee on Health Care & Corrections

Senate Hearing Date(s):January 12, 1988

Senate Staff:Scott Plack (786-7409)

AS OF JANUARY 13, 1988

BACKGROUND:

The Certificate of Need is a health care service and facility regulatory program administered by DSHS.  The program controls the availability of certain health care services and facilities by restricting supply.  Only when the need for a new or expanded service has been established will the state permit its development.

Major changes in the demand for health care in rural areas require providers restructure the mix of services they offer.  Regulatory flexibility is seen as essential for allowing rural providers to adapt to market changes. 

The certificate of need program prevents or obstructs responding to market changes in at least two ways.  The high cost associated with applying for a certificate of need prevents some providers from making application.  In addition, the planning and application process delays the development of the new or expanded service or facility.

SUMMARY:

Rural hospitals are defined.

Rural hospitals are exempted from most certificate of need requirements.  A certificate of need is still required for the establishment of skilled nursing and intermediate care beds.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested on January 6, 1988