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Q: What states collude with Hospitals to limit building of new competing hospitals? ( Answered 5 out of 5 stars,   2 Comments )
Question  
Subject: What states collude with Hospitals to limit building of new competing hospitals?
Category: Health
Asked by: ed777-ga
List Price: $75.00
Posted: 01 Sep 2005 09:52 PDT
Expires: 01 Oct 2005 09:52 PDT
Question ID: 563122
What states DO/DON?T collude with Hospitals to limit the building of
new competing hospitals and thus cause daily room rates, indicated in
medicalcountries.com, as high as $4000+ in U. S. hospitals compared to
$11.00 a day in some other countries.
Answer  
Subject: Re: What states collude with Hospitals to limit building of new competing hospitals?
Answered By: bobbie7-ga on 01 Sep 2005 12:14 PDT
Rated:5 out of 5 stars
 
Hello Ed777,

CERTIFICATE OF NEED ("CON"):


What is a certificate of need?

?A certificate issued by a governmental group to an individual or
institution or organization proposing to create or modify a health
facility, or to offer a new or different type of service.?

Public Health Management & Policy: Dictionary
http://www.cwru.edu/med/epidbio/mphp439/Dictionary.htm


?A Certificate of Need ("CON") is a permit for the establishment or
modification of a health care institution, facility or service,
purchase of major medical equipment, or establishment of certain
services at a designated location. The CON program serves as a growth
management and cost savings tool since it requires certain health
providers to establish the need for new services and facilities before
the providers will be allowed to build facilities, becomes licensed,
or conduct certain business.?
http://www.tennessee.gov/hsda/cert_need_basics.html



The report ?Certificate of Need Programs: A Comparative Assessment?
prepared for the Illinois Health Facilities Planning Board, provides
an overview of States with CON programs.
Published:  June 30, 2004


Chapter II presents an overview of the CON programs across states that
currently regulate and do
planning on health care facilities. 

Illinois uniquely gives the authority to the State Board for both the
duties: 1) approving
standards/criteria and 2) making final decisions on applications.

Michigan, New Jersey and Florida?have Health Department directors make
final decisions on applications and have independent councils enhance
and approve standards/criteria.

New York has the Health Department director make final decisions on
projects except for full review establishment projects on which the
Public Health Council make final decisions.


Below you will find the list of States that have Certificate of Need requirements.

The listing provides the State and the final decision maker

Alaska        
Agency 
Commissioner of Health & Social Services

Arkansas      
Agency 
Health Services Permit Agency (can be appealed to 9  person Commission
appointed by Governor)

Connecticut   
Agency 
Head of Office of Health Care Access

Delaware 
Board 
Delaware Health Resources Board

D.C. 
Agency 
Director

Florida 
Agency 
Agency for Health Care Administration

Georgia 
Agency, or Review Board

Hawaii 
Agency 
Administrator

Illinois 
Board 
Illinois Health Facilities Planning Board

Iowa 
Board 
State Health Facilities Council (Five members, appointed by the Governor)

Kentucky 
Attorney 
Hearing Officers (State Attorneys)

Maine 
Agency 
Commissioner, Department of Human Services

Maryland 
Board 
Maryland Health Care Commission (13 member)

Massachusetts 
Board 
Public Health Council

Michigan 
Agency 
Director, Michigan Department of Community Health

Mississippi 
Agency 
State Health Officer

Missouri 
Board 
Missouri Health Facilities Review Committee (9 members)

Montana 
Agency 
Directors, Department of Public Health and Human Services

Nebraska 
Agency 
Nebraska Health and Human Services Regulation and Licensure

Nevada 
Agency 
Director, Department of Human Resources

New Hampshire 
Board 
Health Services Planning & Review Board

New Jersey 
Agency 
Commissioner of Health and Senior Services

New York 
Agency and Board
Commissioner of Health (services for existing providers), 
NYS Public Health Council (establishment projects)

North Carolina 
Agency 
Chief, Certificate of Need Section

Ohio 
Agency 
Director of Health

Oklahoma 
Agency 
Commissioner of Health

Oregon 
Agency 
Public Health Officer

Rhode Island 
Agency 
Director of Health

South Carolina 
Board 
Board of Health & Environmental Control

Tennessee 
Board 
Health Services & Development Agency (9-member board)

Vermont 
Agency 
Commissioner, Department of Banking, Insurance, Securities, and Health
Care Administration

Virginia 
Agency 
Commissioner of Health

Washington 
Two ways 
Office Chief makes initial decision; 
Secretary of DoH makes final decision on appeals

West Virginia 
Board 
Health Care Cost Review Board (3 members)

Wisconsin 
Agency 
Secretary, Department of Health and Social Services

Table 2.2  Summary of Decision Making for CON Applications
Download full text of this report here:
http://www.idph.state.il.us/about/hfpb/CON%20Programs%20A%20Comparative%20Assessment.pdf


Search terms:
Certificate of need requirements, CON,  States, legislation, health facilities,
hospitals,


I hope the information provided is helpful!


Best regards,
Bobbie7

Request for Answer Clarification by ed777-ga on 14 Sep 2005 07:04 PDT
Good research so far but the question was: "What states DO/DON?T
collude with Hospitals" Have you listed the states that DON?T collude
with Hospital?I know it could be logically deduced which states DON'T
but I would feel more comfortable if you listed the states that do not
collude with hospitals in case I have missed something. One persons
?logic? could be another persons mistake.

Clarification of Answer by bobbie7-ga on 14 Sep 2005 07:59 PDT
Hello Ed777,


STATES WITH CERTIFICATE OF NEED REQUIREMENTS
(Verified June 2004)

Connecticut
Delaware
District of Columbia
Hawaii
Illinois
Kentucky
Maine
Maryland
Massachusetts
Mississippi
Missouri
Nebraska
New Hampshire
New York
North Carolina
Tennessee
Vermont
Washington
West Virginia


Alabama- Yes (Dialysis Facilities); No (Transplant Facilities)
Alaska - Required for any expenditure of $1 million or more
Florida - No (Dialysis Facilities); Yes (Transplant Facilities)
Michigan - No (Dialysis Facilities); Yes (Transplant Facilities)
New Jersey - No (Dialysis Facilities; must be licensed but no
certificate of need required); Yes (Transplant Facilities). State
issues a "call" for needed specialty services. If no "call" is issued
by the state, no applications are accepted.
South Carolina - No (Dialysis Facilities); Yes (Transplant Facilities)
Virginia - No (Dialysis Facilities); Yes (Transplant Facilities)


STATES WITH NO CERTIFICATE OF NEED REQUIREMENT

Arizona
Arkansas
California
Colorado
Georgia
Idaho
Indiana
Iowa
Kansas
Louisiana
Minnesot
Montana
Nevada
New Mexico
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Isalnd
South Dakota
Texas
Utah
Wisconsin
Wyoming 

 

ESRDA Networks
http://www.esrdnetworks.org/CertificateofNeed.htm

Clarification of Answer by bobbie7-ga on 14 Sep 2005 08:49 PDT
Dear Ed777,

I continued my search anbd I found a definite source of CON
Regulations by State provided by the American Health Planning
Association.

2005 Relative Scope and Review Thresholds: CON Regulated Services by State
This information is summarized from the 2005 National Directory of
Health Planning, Policy and Regulatory Agencies, the fifteenth edition
published by the American Health Planning Association

--------------------
States with CON Laws
--------------------

Connecticut
Alaska 
Georgia
Maine
West Virginia
South Carolina
North Carolina
Mississippi
Tennessee
Dist. of Columbia
Kentucky
Rhode Island
New York
Hawaii
Maryland 
Michigan 
Washington
New Hampshire
New Jersey
Alabama
Missouri
Illinois
Iowa 
Virginia
Oklahoma
Montana
Florida 
Arkansas
Massachusetts
Delaware
Wisconsin
Nevada 
Oregon
Ohio
Nebraska 
Louisiana

-----------------------
States with no Con Laws
-----------------------
Arizona
California
Colorado
Idaho    
Indiana
Kansas
Minnesota
New Mexico
North Dakota
Pennsylvania
South Dakota
Texas
Utah
Wyoming

http://www.ahpanet.org/images/CONmatrix2005.pdf

Here is a Map of the 2005 CON Regulations by State
http://www.ahpanet.org/images/CONmap2005.pdf

I hope this helps!

Best regards,
Bobbie7
ed777-ga rated this answer:5 out of 5 stars and gave an additional tip of: $50.00
Your wonderful research shows how the States can eliminate
competition, allocate markets, and increase medical costs for its
citizens by their misuse of the law.

Comments  
Subject: Re: What states collude with Hospitals to limit building of new competing hospitals?
From: bobbie7-ga on 14 Sep 2005 13:38 PDT
 
Thank you for the five stars and nice tip!
--Bobbie7
Subject: Re: What states collude with Hospitals to limit building of new competing hospit
From: gasdoc-ga on 22 Sep 2005 07:05 PDT
 
Your assumption that certificates of need equals increased cost
through elimination of competition is erroneous.  Read the excellent
article at: http://www.ajmc.com/files/articlefiles/AJMC2003junBCROSSHaySP13.pdf.

Essentially, increased cost of inpatient healthcare in recent years is
most closely related to increased use of technology, procedures, and
overall declining health of the American population.

However, to provide evidence that certificates of need to not
correlate with the cost of healthcare delivery, please look at the
following table.  I have placed asterisks next to the states that do
not require a certificate of need. As you can see, some states, such
as California, are very expensive, yet do not require a certificate. 
On the other hand, Montana and Mississippi do require them but are
relatively inexpensive.  I think you can find epidemiological clusters
in some of the states (such as South/North Dakota, Wyoming, Kansas)
that can account for alternative explanations of lower cost of
healthcare delivery.

(Table adopted from http://www.statehealthfacts.org/cgi-bin/healthfacts.cgi?action=compare&category=Health+Costs+%26+Budgets&subcategory=Hospital+Inpatient+Day+Expenses&topic=Expenses+per+Inpatient+Day)

1   Alaska   $1,952  
2   Oregon   $1,842  
3   Washington   $1,827  
4   District of Columbia   $1,824  
5   California   $1,763 **** 
6   Connecticut   $1,684  
7   Utah   $1,654  ****
8   Massachusetts   $1,631  
9   New Jersey   $1,615  
10   Nevada   $1,608  
11   Rhode Island   $1,591  
12   Maryland   $1,571  
13   Arizona   $1,570  ****
14   New Mexico   $1,563  ****
15   Colorado   $1,551 ****
16   Delaware   $1,508  
17   Ohio   $1,504  
18   Illinois   $1,497 
19   Texas   $1,482  ****
20   Maine   $1,416  
21   Missouri   $1,403
22   New York   $1,402  
23   New Hampshire   $1,389  
24   Florida   $1,387  
25   Michigan   $1,382  
26   South Carolina   $1,355 
27   Indiana   $1,352  ****
28   Hawaii   $1,350  
29   Pennsylvania   $1,326  ****
30   Wisconsin   $1,282  
31   Virginia   $1,277  
32   Idaho   $1,235  ****
33   North Carolina   $1,200  
34   Tennessee   $1,187 
35   Louisiana   $1,177
35   Oklahoma   $1,177  
37   Alabama   $1,166 
38   Vermont   $1,148  
39   Arkansas   $1,130  
40   Minnesota   $1,109  ****
41   Kentucky   $1,106  
42   Georgia   $1,044  
43   Nebraska   $1,043  
44   West Virginia   $993 
45   Iowa   $952  
45   Kansas   $952  ****
47   Wyoming   $943  ****
48   Mississippi   $882  
49   North Dakota   $859  ****
50   South Dakota   $747 ****
51   Montana   $733

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