Legislature(2017 - 2018)BELTZ 105 (TSBldg)
03/15/2018 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB62 | |
| SB76 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 62 | TELECONFERENCED | |
| += | SB 76 | TELECONFERENCED | |
SB 62-REPEAL CERTIFICATE OF NEED PROGRAM
1:41:17 PM
CHAIR COSTELLO announced the consideration of SB 62 and noted
the proposed committee substitute (CS).
1:41:59 PM
At ease
1:42:21 PM
CHAIR COSTELLO reconvened the meeting.
SENATOR MEYER moved to adopt the CS for SB 62, version 30-
LS0502\O, as the working document.
CHAIR COSTELLO objected for an explanation of the changes.
1:42:54 PM
NATASHA MCCLANAHAN, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, paraphrased the following
explanation of changes between versions D and O of SB 62:
Version O allows for an exemption from the certificate
of need program if the new construction of a
healthcare facility, alteration of bed capacity, or
addition of a category of health services is in a
location that is over 75 miles from another healthcare
facility. This is a change from 100 miles in Ver. D to
75 miles in Ver. O. The change assists more
communities that are currently struggling to attract
and retain healthcare services to better provide equal
access to care for all Alaskans.
CHAIR COSTELLO removed her objection and asked if there was
further objection.
1:44:04 PM
SENATOR GARDNER asked the rational for selecting 75 miles from
another health care facility.
CHAIR COSTELLO said individuals, especially from Delta Junction,
testified that the community had been unsuccessful going through
the CON process even though the closest health care facility was
100 miles away. The reason for selecting 75 miles was that it is
about an hour away under good driving conditions. She noted a
map in the packets that shows which Alaskan communities would be
affected.
1:46:29 PM
SENATOR GARDNER removed her objection.
CHAIR COSTELLO stated that without further objection, version O
was adopted.
SENATOR MEYER observed that the fiscal notes would probably need
to be updated.
CHAIR COSTELLO asked if he would like Margaret Brodie to comment
on the department's response to the committee substitute.
SENATOR MEYER said yes.
CHAIR COSTELLO asked Ms. Brodie to speak to the fiscal impact
and the department's response to the committee substitute.
1:47:21 PM
MARGARET BRODIE, Director, Division of Health Care Services,
Department of Health and Social Services (DHSS), Anchorage,
Alaska, explained that the CS will result in a zero fiscal note
because the department already does this work. She said the
department was "fine" with the CS.
SENATOR GARDNER asked if the department had a position on the
current draft of the bill.
MS. BRODIE clarified that the department would support this
change and the bill.
1:48:55 PM
SENATOR MICCICHE asked how the CS changes the Certificate of
Need Program other than exempting a facility that is 75 miles
from another health care facility from the CON statutes.
MS. BRODIE deferred the question to Donna Stewart.
1:49:38 PM
DONNA STEWART, Executive Director, Office of Rate Review (ORR),
Department of Health and Social Services (DHSS), explained that
ORR currently reviews all applications that fit the criteria of
the statute. The current draft of the bill allows an exemption
for facilities that are built 75 miles away from an existing
[CON] facility. Theoretically, the department would see fewer
applications. Over the last eight to ten years, the few small
communities that applied for a certificate of need all had
additional circumstances attached so they would have still gone
through the CON process. Delta Junction would be the first
community that would fall under the new requirement of 75 miles
from another CON facility.
SENATOR MICCICHE posed the hypothetical situation of a for-
profit facility opening in Delta Junction next door to the
nonprofit facility that opened under the proposed exemption. He
asked if the second health care facility would be required to
obtain a certificate of need.
MS. STEWART said it would depend on the timing. Until the
nonprofit receives certification that it is an active and viable
hospital, it could be in jeopardy of having a competitor open
next door.
1:53:16 PM
SENATOR STEVENS said he was uncomfortable with the amendment
because he wasn't sure whether the hospitals that objected to
the original version would be placated by the current draft.
1:54:09 PM
CHAIR COSTELLO asked Jean Mischel to comment on Senator
Micciche's question.
1:54:17 PM
JEAN MISCHEL, Legislative Counsel, Legislative Legal Services,
Legislative Affairs Agency, Alaska State Legislature, Juneau,
Alaska, said the statute is drafted to mean that the expenditure
of $1 million plus the inflation adjustment would trigger the
need for the certificate of need. Once the nonprofit spent what
is now equivalent to $1.4 million, it would have a good argument
that it had vested its interest in the health care facility
enough to meet the exception standard before the for-profit
hospital comes in. However, if the nonprofit came in under the
exception and later decided to expand services, it would need a
certificate of need. Also, if the nonprofit beat the for-profit
facility within the 75-mile radius, the for-profit facility
would be required to meet the standard for the certificate of
need for that area.
CHAIR COSTELLO said that was her understanding; page 2 talks
about where the health care facility is initiated. She thanked
Senator Micciche for the question.
SENATOR MICCICHE expressed a little confusion about how a
facility that was exempted from the CON process could ever
qualify for CON protection. "It keeps pointing back to [AS
18.07.031] and we just changed .031"
MS. MISCHEL said .031(a) doesn't just provide the exception for
the 75-mile radius. It also prohibits a person from expending $1
million or more for the three types of facilities and that would
still apply to facilities that have initiated construction.
1:58:04 PM
At ease
1:59:45 PM
CHAIR COSTELLO reconvened the meeting. She found no further
questions and solicited a motion.
1:59:57 PM
SENATOR MEYER moved to report the CS for SB 62, version 30-
LS0502\O, from committee with individual recommendations and
forthcoming revised fiscal note(s).
CHAIR COSTELLO found no objection and announced that CSSB
62(L&C) moved from Senate Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSSB 62 Ver. J.pdf |
SL&C 3/15/2018 1:30:00 PM |
SB 62 |
| CSSB62 Explanation of Changes Ver. D to J.pdf |
SL&C 3/15/2018 1:30:00 PM |
SB 62 |
| CSSB 62 - 03.14.18 Legislative Research Request - Alaska Communities Without Nearby Health Care Facilities.pdf |
SL&C 3/15/2018 1:30:00 PM |
SB 62 |
| CSSB 62 Ver. O.pdf |
SL&C 3/15/2018 1:30:00 PM |
SB 62 |
| CSSB62 Explanation of Changes Ver. J to O.pdf |
SL&C 3/15/2018 1:30:00 PM |
SB 62 |