Hawaii House Bill HR82

Hawaii 2024 Regular Session

• Introduced: 3/7/24
• Refer: 3/13/24

Caption

Requesting A Study Of The Necessity For Hawaii's Certificate Of Need Program Under Chapter 323d, Hawaii Revised Statutes.

Impact

The resolution acknowledges the mixed reviews surrounding the effectiveness of the CON program. Proponents argue that the program enhances healthcare quality and access by ensuring resources are implemented where they are needed most, particularly in underserved areas. However, critics assert that these restrictions hinder competition, potentially driving up costs and impairing the innovation of healthcare delivery methods. The study requested by HR82 seeks input regarding the need for modifications or even the potential repeal of the CON, particularly in light of changing healthcare dynamics in Hawaii and nationally.

Summary

House Resolution 82 (HR82) proposes a comprehensive study of Hawaii's Certificate of Need (CON) program, which is governed by Chapter 323D of the Hawaii Revised Statutes. The CON program mandates that healthcare facilities obtain state approval for construction or expansion efforts. It aims to regulate health care costs and prevent unnecessary duplication of services while ensuring that new healthcare investments align with community needs. The resolution draws attention to the fact that Hawaii's CON law has been in place since 1975, a framework initially established in response to federal mandates that sought to control healthcare expenditures at the national level.

Contention

Notably, past proposals to repeal or amend the CON law have triggered significant opposition. Advocacy groups, including various healthcare associations, underline that the CON framework is essential for maintaining low healthcare costs and safeguarding vulnerable populations from market exploitation by for-profit entities. The discussion surrounding HR82 reflects a broader national discourse on balancing regulatory oversight against free market principles in healthcare, emphasizing the diverse perspectives on the CON's role in contemporary healthcare delivery systems.