“CERTIFICATE OF NEED” HEARING ( I CALL IT “CERTIFICATE OF MONOPOLY )

Senator Davis and Rep. Wilson held their promised Health, Education, and Social Services (HESS) joint House /Senate hearing this afternoon on issues surrounding the Certificate of Need (CON). Currently, the state requires a “Certificate of Need” of anyone who would open certain medical facilities. Although I am not a member of the HESS Committee, I was graciously allowed to sit in at the committee table.

I have sponsored a bill to eliminate the CON – I label it a “Certificate of Monopoly.” I am also a co-sponsor of an initiative to do the same thing. In my opinion, the CON prevents competition in medical care, and lack of competition creates higher medical expense, as well as lack of choice.

One proponent of the CON who testified of the hearing claimed opponents we just “trying to make money and get rich” by eliminating the CON. That brought a sharp response from me (and raised my blood pressure). I replied with words to the effect that “there’s nothing wrong with making money” if it’s done honestly and fairly. This is America, and we have prospered in our capitalistic society. I added that the large hospitals are likewise trying to make money by eliminating competition. To me, it was a case of the “pot calling the kettle black.”

The committee discussed ongoing efforts to resolve the CON issue by negotiated regulation. That sounds good, but I think it’s better to simply eliminate the CON. Both the Senate and House Chairs of HESS promised hearings on my bill when the legislature returns to Juneau in January, and I thanked them for that. No votes were taken today, because that’s not allowed during the interim between sessions.