HB 297-AMBULATORY SURGICAL FACILITIES  REPRESENTATIVE JEANETTE JAMES, sponsor of HB 297, stated the version before the committee [CSHB 297(STA)(title am)] is quite different from the original version. After a lot of discussion in House committees, a solution to the immediate problem of raising the $1 million floor was found. The new version simply allows relocation of a health care facility to a new site in the same community without a certificate of need as long as there is no increase in the services offered. It also disallows use of the vacated site for another health care facility without a certificate of need, notwithstanding the $1 million floor. SENATOR WILKEN asked Representative James if the problem that prompted this bill originated in Fairbanks. REPRESENTATIVE JAMES replied the real problem is in Anchorage but there is a presumed problem in Fairbanks as well. This bill will fix the Anchorage problem but does not address the situation in Fairbanks. A facility in Anchorage wishes to relocate two blocks away. The facility size will remain the same but doctors' offices will be built in the parking lot. Previously, moving a facility was allowed without a certificate of need as long as services were not expanded. But, another facility in Anchorage moved and afterward the existing facility was replaced by another health care facility under the $1 million cap, therefore services were expanded. DHSS could not allow the requested relocation without a certificate of need. This bill will allow DHSS to permit the new relocation without a certificate of need. She has made a commitment to continue to study this issue further during the next year to find out what can be done to solve these problems throughout the state. CHAIRMAN MILLER noted that Senators Pearce and Kelly were present. He stated it is his intent to pass this legislation out of committee today and that he has always supported the repeal of the certificate of need however, considering the short amount of time available left in the session, a repeal is not possible this year. He said the legislature raised the limit to $1 million in 1983. SENATOR WILKEN asked whether CSHB 297(STA)(title am) has any further committees of referral. CHAIRMAN MILLER said it will go to the Rules Committee. SENATOR WILKEN asked that a representative of DHSS comment on HB 297. MR. ELMER LINDSTROM, Special Assistant to Commissioner Perdue at DHSS, said DHSS has no objection to the bill as presented today. To his understanding, an existing ambulatory surgical center with a certain set of capabilities wants to relocate with the same set of capabilities. This bill would allow that to occur without a certificate of need for the replacement facility. Commissioner Perdue shares Representative James' belief that it is worthwhile to review the underlying certificate of need law. Last year, the Long Term Care Task Force put in place new and very appropriate standards for long term care facilities and nursing facilities and review the certificate of need. This bill contains the old standards which apply to acute care facilities. Times have changed. The old standards contain definitional problems that are worth further discussion. SENATOR PEARCE moved CSHB 297(STA)(title am) from committee with individual recommendations. There being no objection, the motion carried.