HB 1806 -- CERTIFICATE OF NEED

SPONSOR:  Schaaf

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Healthcare Transformation by a vote of 5 to 1 with 1 present.

This bill defines "long-term care facilities" as it relates to
the Certificate of Need Program and limits 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.

The bill also changes the designation of residential care
facility I to assisted living facility and residential care
facility II to residential care facility.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $247,000
in FY 2009, FY 2010, and FY 2011.  No impact on Other State Funds
in FY 2009, FY 2010, and FY 2011.

PROPONENTS:  Supporters say that the Certificate of Need Program
reduces competition in the health care market, is a failed policy
planning tool, can create monopolies and oligopolies, does not
reduce health care costs, impairs access to health care, and
prevents patient choice.  The program has outlived its
usefulness, and 14 states have already repealed it.

Testifying for the bill were Representative Schaaf; Robert
Cimasi; Missouri State Medical Association; and Missouri
Association of Osteopathic Physicians and Surgeons.

OPPONENTS:  Those who oppose the bill say that eliminating the
Certificate of Need Program will increase health care costs and
could result in less-efficient use of major medical equipment.
The program prevents duplication of services, saves the state
money, provides oversight and public input on health care
decisions, and does not reduce innovation.

Testifying against the bill were St. Louis Area Business Health
Coalition; Missouri Health Facilities Review Committee,
Department of Health and Senior Services; Missouri Hospital
Association; Ford Motor Company; BJC Healthcare; Hospital
Corporation of America; and Associated Industries of Missouri.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm