CERT. OF NEED; COVERED CAPITAL EXPENDITURE                                   S.B. 669 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

Senate Bill 669 (Substitute S-1 as reported)

Sponsor:  Senator Curtis S. VanderWall

Committee:  Health Policy and Human Services

CONTENT

The bill would amend the Public Health Code to do the following:

-- Delete a requirement to obtain a certificate of need for a covered capital expenditure.

-- Delete a requirement that the Certificate of Need Commission develop, approve, disapprove, or revise certificate of need review standards related to the need for making covered capital expenditures.

-- Modify a requirement for a health maintenance organization to obtain a certificate of need for certain hospital or health facility projects.

-- Delete the definition of "covered capital expenditure".

-- Modify the definition of "certificate of need".

-- Delete a provision that prohibits a hospital from transferring no more than 35% of its licensed beds to another hospital or freestanding surgical outpatient facility not more than one time if certain common control requirements were met.

MCL 333.20145 et al.                                               Legislative Analyst:  Tyler VanHuyse

FISCAL IMPACT

The bill would remove the requirement for a certificate of need for capital expenditures related to construction or conversions of health facilities. As the capital expenditures almost always are used to finance expansions of facilities and those expansions themselves require a certificate of need, the bill would have no meaningful fiscal impact.

Date Completed:  2-21-20                                                Fiscal Analyst:  Steve Angelotti

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.