Bill > HCR123

This Concurrent Resolution requests the Legislative Reference Bureau, an independent research arm of the Hawaii Legislature, to conduct a comprehensive study on the necessity of Hawaii's Certificate of Need (CON) program, which is governed by Chapter 323D of the Hawaii Revised Statutes. The CON program, established in 1975, requires healthcare facilities and services to obtain state approval for construction, expansion, and major capital expenditures, with the original intent of coordinating health service planning and facility development. However, the resolution notes that the federal mandate for such programs was repealed in 1987, and since then, many states have either eliminated or narrowed their CON programs. The study will examine criticisms of Hawaii's CON program, including concerns that it hinders competition, limits consumer choice, stifles innovation, is inconsistently administered, fails to control costs, and particularly disadvantages rural hospitals and neighbor island residents. The Legislative Reference Bureau is tasked with investigating potential exemptions or modifications to the program, considering beneficial changes from other states, and assessing whether reducing or eliminating CON requirements could improve healthcare access for vulnerable populations, ultimately submitting a report with findings and legislative recommendations to the Legislature by early 2023.