HCS HB 466 -- CERTIFICATE OF NEED

SPONSOR:  Schaaf

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Healthcare Facilities by a vote of 7 to 1.

This substitute 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 substitute 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 Less than
$425,938 in FY 2008, FY 2009, and FY 2010.  No impact on Other
State Funds in FY 2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that the Certificate of Need Program
has failed to lower healthcare costs, is anti-competitive, is a
barrier to healthcare innovation, reduces patient access and
choice, hasn't improved healthcare quality, is inefficient, hurts
Missouri's economy, and doesn't provide a free market.  The
program has outlived its usefulness, and 14 states have repealed
it with no evidence of any negative impact.

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

OPPONENTS:  Those who oppose the bill say that the program does
not limit market innovation, allows specialization within a
hospital system, provides a useful inventory of services, ensures
accountability, promotes planning, and protects the community.
Eliminating the program won't create a free market for
healthcare.  Without it, providers can be selective in choosing
patients and procedures, and patients can be steered to one
facility over another.  Repealing the program can promote growth
of physician-owned specialty hospitals.

Testifying against the bill were Missouri Hospital Association;
St. Louis Area Business Health Coalition; Ford Motor Company; BJC
HealthCare; Hospital Corporation of America; and Thomas Piper.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:19 am