An Act relating to the certificate of need program; and providing for an effective date.

Posted: March 15, 2000

In 1976 the federal government enacted a law requiring all states to have a Certificate of Need (CON) program. The process was intended to keep down health care costs by limiting construction of health care facilities and the acquisition of expensive medical equipment. The federal government determined that the law did not produce the desired results and it was repealed in 1982. Legislation repealing and amending CON laws are now being considered in many states.

Alaska's certificate of need law was amended in 1983 to establish a threshold of one million dollars on intended capital expenditures before a CON is necessary. Originally, HB 297 raised that threshold to seven million dollars.

The question of what to do with Alaska's CON program is a very controversial one, though all parties agree the goal is to provide good health care at a reasonable price.

The current version of HB 297 is quite different from the original, because after a great deal of discussion we have found a solution to the immediate problem without raising the $1,000,000 floor.

This version allows relocation of a health care facility to a new site in the same community without a C.O.N. as long as there is no increase in the services offered.

It disallows use of the vacated site for another health care facility without a C.O.N.

All parties still admit that Alaska's Certificate of Need process needs a thorough examination and possible changes, and I am committed to spending the next two years doing that.

| Top | Representative James's Page |