Governor Crist Signs Certificate of Need Bill Into Law

Florida Governor Charlie Crist today, May 19, 2008, signed into law CS 2nd Eng. Senate Bill 2326: Relating to Certificates of Need/General Hospitals by the Senate Health and Human Services Committee and Senator Durell Peaden.

SB 2326 streamlines the Certificate of Need process required for the approval of new hospitals, revising the requirements for submitting and reviewing general hospital applications. SB 2326 also requires the Florida Agency for Health Care Administration (“AHCA”) to attend public hearings on such applications; and also requires an existing hospital to submit a written statement of opposition in order to challenge the AHCA decision on an application, etc.

The Governor’s press release is reprinted below.

 

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Governor Crist Signs Certificate of Need Reform Bill

Legislation will reform approval process for new hospitals

BOYNTON BEACH – Governor Charlie Crist began a weeklong series of health care bill signings today by signing Senate Bill 2326, which streamlines the Certificate of Need (CON) process required for the approval of new hospitals, while visiting Bethesda Memorial Hospital in Boynton Beach.

“By making the Certificate of Need process more efficient and effective, we are improving access to health care across Florida,” Governor Crist said. “This once burdensome process for general hospitals will see less time and costs spent on litigation and will result in more immediate access to needed health care services in Florida’s communities.”

The CON review process for general hospitals will be streamlined, encouraging the creation of critical health facilities and improved access to health care. This legislation will also increase competition and efficiency in the health care marketplace and spur economic development. Expenditures will now be focused on building good hospitals rather than on litigation costs.

“This bill enables the areas of our state that are really in need of hospitals to secure a health care home for their communities, and it takes the high cost of litigation out of the process,” bill sponsor Senator Durell Peaden said.

This legislation also establishes guidelines regarding challenges in the CON process. Potential challengers will be required to provide the state with a detailed statement of opposition during the review process that clearly defines the issues of concern. Additionally, a challenger who decides to appeal the state’s final order after it has been to the Division of Administrative Hearings must post a $1 million bond and, if they lose the appeal, cover the other party’s legal costs up to that amount. These changes will make the CON process for general hospitals a more informed and timely process.

Later today, the Governor will host similar events at the Mayo Clinic in Jacksonville and the Capitol in Tallahassee.

 

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