To revise the powers of a state Certificate of Need (CON) commission related to “capital expenditures” for a new hospital or clinic, or expansion of an existing one. This commission has the power to approve or deny these investments, as well as any changes in the location, purpose or number of beds allowed in an existing facility, or plans to start or expand current clinical services. The Senate Fiscal Agency reports that the proposed change would have little practical effect because these regulated capital expenditures “are used to finance expansions of facilities and those expansions themselves require a certificate of need” from the commission.
This and related bills would also revise the population threshold in a provision that requires a provider to get CON permission to “relocate its licensed beds.” This and similar laws in other states were enacted under a federal mandate in the 1970s with the intention of lowering health care spending by reducing investment in the field; 15 states have repealed the laws but 35 states including Michigan still have them.