Legislature(2023 - 2024)BUTROVICH 205
03/07/2023 03:30 PM Senate HEALTH & SOCIAL SERVICES
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s) Commissioner Department of Health | |
| SB8 | |
| SB44 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 8 | TELECONFERENCED | |
| += | SB 44 | TELECONFERENCED | |
SB 8-REPEAL CERTIFICATE OF NEED PROGRAM
4:02:20 PM
CHAIR WILSON reconvened the meeting and announced the
consideration of SENATE BILL NO. 8 "An Act repealing the
certificate of need program for health care facilities; making
conforming amendments; and providing for an effective date."
He related that this was the second hearing, public testimony
was heard, and there was a committee substitute (CS) for the
committee to consider. He solicited a motion.
4:02:57 PM
SENATOR KAUFMAN moved to adopt the committee substitute (CS) for
SB 8, work order 33-LS0135\B, as the working document.
4:03:07 PM
CHAIR WILSON objected for purposes of discussion.
4:03:14 PM
GARY ZEPP, Staff, Senator David Wilson, Alaska State
Legislature, Juneau, Alaska, provided the following summary of
changes from version A to version B of SB 8.
Page 4, line 14
Replace "Department of Family and Community Services" with
"Department of Health."
Page 6, lines 4 and 10
Replace "Department of Family and Community Services" with
"Department of Health."
Page 6, line 15
Change the effective date from July 1, 2026 to July 1, 2028
CHAIR WILSON asked whether there were any questions.
4:04:29 PM
SENATOR DUNBAR asked the reason for delaying the effective date
until 2028.
CHAIR WILSON replied that was a compromise to help hospitals
recoup costs and plan for an end date of the Certificate of Need
(CON) Program. The additional time also provides an opportunity
for the department to develop additional regulations that may be
needed for hospital accreditations.
SENATOR DUNBAR asked what costs were anticipated from this
change.
CHAIR WILSON answered that the extra time allows hospitals that
may have made significant investments into equipment to recoup
some of that cost by continuing to have no competition for two
additional years.
4:05:40 PM
CHAIR WILSON removed his objection; he found no further
objection and version B was adopted.
4:06:16 PM
SENATOR DUNBAR said he'd like to see the data from states that
have repealed CON that shows the degree to which costs have
fallen since the repeal. Repealing CON sounds like a good idea
in theory but his concern was about the unintended consequences
it may have. He cited the testimony the committee heard that
repealing CON would result in the most profitable procedures no
longer being offered in hospitals, which would not lead to lower
costs.
CHAIR WILSON responded that he'd had conversations with the
Primera Blue Cross representative for this region who said his
experience was that a healthcare consolidation of services only
increases the cost of health care. His office has asked
healthcare organizations that have said they were having
financial trouble to produce their financial records that show
the actual cost to provide a service, but many hospitals and
agencies won't disclose the true cost of a service.
4:09:14 PM
SENATOR TOBIN observed that the two letters in the bill packets
from the Pacific Health Coalition were somewhat confusing.
4:09:28 PM
At ease.
4:10:17 PM
CHAIR WILSON reconvened the meeting. He suggested the committee
members who wanted further dialog should contact the individual
from Pacific Health Coalition who wrote that he was rescinding
his previous testimony without comment.
4:10:49
CHAIR WILSON found no further comments or questions and he
solicited a motion.
4:10:51 PM
SENATOR KAUFMAN moved to report the CS for SB 8, work order 33-
LS0135\B, from committee with individual recommendations and
attached fiscal note(s).
4:11:04 PM
CHAIR WILSON found no objection and CSSB 8(HSS) was reported
from the Senate Health and Social Services Standing Committee.