HB 1537 -- CERTIFICATE OF NEED

SPONSOR:  Schaaf

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Healthcare Facilities by a vote of 5 to 4.

This bill defines "long-term care facilities" for the purposes of
the Certificate of Need Program and limits the application of
certificate of need requirements to long-term care facilities.
Currently, certificate of need requirements apply to a broader
range of health care facilities, including hospitals and
long-term care facilities.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Less than
$404,165 in FY 2007, FY 2008, and FY 2009.  No impact on Other
State Funds in FY 2007, FY 2008, and FY 2009.

PROPONENTS:  Supporters say the bill will create a free market
system allowing hospitals to compete against one another and
consumers to choose the best quality of care.  Some argue that
the Certificate of Need Program has failed to lower health care
costs, is a barrier to health care innovation, and has reduced
access and patient choice while not improving health care
quality.

Testifying for the bill were Representative Schaaf; Missouri
Association of Osteopathic Physicians and Surgeons; Signature
Health Services; Citizens Health Care Association; Missouri State
Medical Association; and Robert James Cimasi.

OPPONENTS:  Those who oppose the bill say that repealing the
certificate of need laws in other states has encouraged the
development of speciality hospitals.  Speciality hospitals,
usually owned by specialist physicians, focus on the most
lucrative procedures; and patients, thereby, undermine the few
profitable services at community hospitals.  Studies have shown
that health care utilization increases when physician-owned
speciality hospitals enter a market.

Testifying against the bill were Missouri Hospital Association;
St. Louis Area Business Health Coalition; and United Auto
Workers, Missouri State CAP Council.

Dominic Lackey, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:43 am