Hawaii House Bill HR123

Hawaii 2022 Regular Session

• Introduced: 3/11/22
• Refer: 3/14/22

Caption

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.

Impact

The proposed study is intended to evaluate the current framework of the CON program, assess its role in Hawaii's healthcare system, and determine whether certain types of facilities or services should be exempt from the program’s requirements. The study seeks to identify how modifications to the CON program, as implemented in other states, might be applicable in Hawaii. Important aspects that will be examined include the effects of the program on healthcare access and service quality for vulnerable populations, particularly residents of neighbor islands.

Summary

H.R. 123, introduced in the Thirty-first Legislature of Hawaii, proposes a resolution requesting the Legislative Reference Bureau to conduct a comprehensive study on the necessity and effectiveness of Hawaii's Certificate of Need (CON) program. Initially established in 1975, the CON program was designed to manage healthcare facility construction and expansions by requiring state approval. However, it has faced considerable criticism regarding its impact on competition and healthcare costs, which have prompted discussions around its relevance in the modern healthcare landscape.

Conclusion

The resolution calls for the submission of a detailed report outlining findings and recommendations regarding the CON program, to be delivered to the legislature prior to the 2023 Regular Session. By potentially eliminating or modifying the existing regulatory framework surrounding the CON, the bill seeks to align Hawaii's healthcare policies with contemporary needs, while enhancing healthcare accessibility and equality across the state.

Contention

Critics argue that the CON program creates barriers to entry for new healthcare providers and restricts competition, which in turn limits patient choices and may inflate costs. Observers highlight that the program's inconsistencies and operational hurdles hinder its original intent of controlling healthcare costs and improving service delivery. Proponents of reform argue that reevaluating the CON requirements could alleviate these barriers, foster innovation in healthcare services, and enhance access, especially for underserved populations on the neighbor islands.