HOUSE BILL NO. 187 "An Act relating to the certificate of need program for nursing care facilities and other facilities; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Senator Wilken presented the bill noting that the sponsors, the House Health Education and Social Services Committee, were unable to attend the meeting. He indicated that this bill is identical to SB 59 that the Committee heard previously. Senator Gary Wilken reminded members that the legislation is a result of the Long Term Care Task Force's Recommendation #21. He stated that one of the goals of the task force is to keep people in home settings rather than institutions, because it is less expensive and in many cases, the care is better. Senator Gary Wilken warned that there would be a financial risk if a "certificate of need" process is not implemented. He referred to the ability to build nursing homes using Medicaid funds, and cautioned that there could be a proliferation of new homes, which would cost the state. In response to this concern, this bill adds a third level of consideration before new nursing homes can be constructed, he stated. The original two criteria for new nursing home approval are accessibility and quality, and he noted that the new criteria would require consideration of cost- effectiveness and appropriateness. Tape: SFC - 99 #141, Side B ELMER LINDSTROM, Special Assistant, Office of the Commissioner, Department of Health and Social Services testified that the Department of Administration also contributed to the recommendations of the Long Term Care Task Force. He stated that the Department of Health and Social Services supports the bill. He had heard the bill described as a moratorium, but he assured the Committee that the department does not view this bill as such. He stressed that the bill actually gives the commissioner some additional standards, which the department feels are appropriate, when a certificate of need application is being reviewed. He predicted that in the future, the need for new nursing home beds will be demonstrated and will meet all the criteria. Elmer Lindstrom pointed out that the bill has a fiscal note, which reflects a one-time cost. He explained that the certificate of need program is administered by one staff member and because that staff already has several applications pending relating to acute-care programs, additional funds are necessary to contract out the task of setting up the new standards. He suggested that since there currently are no pending nursing home applications on file, this is an ideal time to implement the new criteria. Senator Gary Wilken commented that after the Committee had considered the companion SB 59, day-surgery and imaging center facilities were added to that bill. He noted that the conflicts regarding the additional facilities were since settled and this bill only addresses nursing homes. Senator Loren Leman pointed out a technical discrepancy with language page 4, lines 1 and 9, saying that "relating" should actually be "related". He felt the matter should be pointed out to the legal drafter. Senator Phillips wanted it put on the record that he has a possible conflict of interest with this legislation due to his employment with an organization that operates several nursing homes. Senator Adams objected to allowing Senator Randy Phillips abstain from voting on the bill. Senator Wilken offered a motion to report from Committee, CSHB 187(FIN) with individual recommendations and accompanying fiscal note from the Department of Health and Social Services in the amount of $26.5. Without objection, the bill was REPORTED OUT. ADJOURNMENT Assistant Co-Chair Alexis Grundman adjourned the Committee on behalf of Co-Chair John Torgerson until tomorrow at 2:00PM. SFC-99 (15) 5/15/99