OLR Bill Analysis

sSB 1066

AN ACT CONCERNING CERTIFICATE OF NEED APPLICATION GUIDELINES.

SUMMARY:

This bill adds to the factors that the Department of Public Health's (DPH) Office of Health Care Access (OHCA) must consider when evaluating a certificate of need (CON) application, whether the applicant has satisfactorily demonstrated that the proposal is consistent with the overall goals of federal health care reform.

Generally, the law requires a health care facility to apply for a CON when it proposes to (1) establish a new facility or provide new services, (2) change ownership, (3) purchase or acquire certain equipment, or (4) terminate certain services.

Current law requires OHCA, when reviewing a CON application, to consider:

1. whether the proposal is consistent with any applicable policies and standards in DPH regulations;

2. the relationship of the proposal to the statewide health care facilities and services plan;

3. whether there is a clear public need for the proposed health care facility or services;

4. whether the applicant has satisfactorily demonstrated how the proposal will affect the financial strength of the state's health care system or that it is financially feasible for the applicant;

5. whether the applicant has satisfactorily demonstrated how the proposal will improve the quality, accessibility, and cost-effectiveness of healthcare delivery in the region;

6. the applicant's past and proposed provision of health care services to relevant patient populations and payer mix;

7. whether the applicant has satisfactorily identified the population to be served by the proposal and satisfactorily demonstrated that the identified population needs the proposed services;

8. the utilization of existing health care facilities and health care services in the applicant's service area; and

9. whether the applicant has satisfactorily demonstrated that the proposal will not result in an unnecessary duplication of existing or approved health care services or facilities.

The office, as it deems necessary, may revise or supplement these guidelines and principles through regulation.

EFFECTIVE DATE: July 1, 2013

COMMITTEE ACTION

Public Health Committee

Joint Favorable Substitute

Yea

20

Nay

7

(04/02/2013)