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objection and version B was adopted. 4:06:16 PM SENATOR DUNBAR said he'd like to see the data from states that have repealed CON that shows the degree to which costs have fallen since the repeal.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.