Bill > HR123

This Resolution requests the Legislative Reference Bureau, an independent research agency, to conduct a comprehensive study on the necessity and effectiveness of Hawaii's Certificate of Need (CON) program, which is governed by Chapter 323D of the Hawaii Revised Statutes. The CON program, originally established in 1975 to meet federal requirements, mandates that healthcare facilities and services obtain state approval before undertaking construction, expansion, or major capital expenditures. However, the federal mandate was repealed in 1987, and since then, many states have either eliminated or scaled back their CON programs. This Resolution highlights criticisms of Hawaii's CON program, including concerns that it hinders competition, limits consumer choice, drives up costs, stifles innovation, is inconsistently administered, and negatively impacts rural and neighbor island healthcare access. Therefore, the study will examine the program's current role, potential exemptions, beneficial modifications from other states, and whether reducing or eliminating CON requirements could improve healthcare access for vulnerable populations, with a report and recommendations due to the Legislature before the 2023 session.