Requesting The Legislative Reference Bureau To Conduct A Study Of The Necessity For Hawaii's Certificate Of Need Program Under Chapter 323d, Hawaii Revised Statutes.
The resolution aims to evaluate the existing Certificate of Need program, which has faced consistent criticism for limiting competition in healthcare markets, thereby resulting in higher costs and reduced consumer choices. Critics argue that the program acts as a barrier to the establishment and expansion of healthcare providers, particularly affecting rural hospitals and options available to residents of neighbor islands. The study is intended to assess whether reforms or even the elimination of these regulations could enhance healthcare access and quality in Hawaii, especially for vulnerable populations.
HCR123 is a House Concurrent Resolution from the State of Hawaii requesting the Legislative Reference Bureau to conduct a study on the necessity of Hawaii's Certificate of Need (CON) program as outlined in chapter 323D of the Hawaii Revised Statutes. The CON program mandates that healthcare facilities obtain state approval for various actions including construction, expansion, and significant capital expenditures. This legislation is rooted in a historical federal requirement from 1974 that has since been repealed, prompting questions about the relevance and effectiveness of such a program in the current healthcare landscape.
The necessity of Hawaii's CON program has become increasingly questioned amidst national healthcare reforms and evolving market conditions. The resolution outlines specific areas for study, including the current implementation of the CON program, potential exemptions for certain types of facilities, and comparisons with modified programs in other states. This exploration indicates a shift towards possibly liberalizing healthcare provision, allowing for more responsive and competitive healthcare availability across the state. Proponents of the resolution advocate for a more efficient healthcare system that aligns better with patient needs, while opponents may raise concerns about regulatory safeguards being weakened.
Should the study support reforms, it would provide recommendations on how to modify or eliminate existing requirements, while suggesting new legislation aimed at optimizing healthcare access. A report detailing findings and recommendations is to be submitted to the legislature in advance of the 2023 Regular Session, further implying a move towards actionable change based on the study's outcomes.