House Bill 249

Chair�s Name: Ron Stephens

Committee: Special Committee on Certificate of Need

House Sponsor: Sharon Cooper

Section 1 adds a new definition for �compliant destination acute care cancer specialty hospital� and distinguishes it from a �health care facility� and a �hospital.�  Compliance requires operation for less than 12 months or a certificate of need, a 65 percent or greater out of state patient base, and that 3 percent or greater of its annual adjusted gross revenues provide uncompensated indigent or charity care. 

Section 2 adds that after July 1, 2007, the department must find, by the current Code�s criteria, that the destination acute care cancer specialty hospital (DACCSH) or its new services are needed before being offered in GA.  A DACCSH with a certificate of need to operate must obtain an additional certificate to offer new institutional health services if under the construction, development, or other establishment of a new health care facility.  New, exclusive criteria to determine need are outlined in Section 4. Other new institutional health services do require an additional certificate of need; however, notice of new services, applicable information and fees are still required. 

Section 3 adds any acquiring person, via stock, etc., of a DACCSH to the state�s current notification requirements and subjects acquiring person to the current late fines. 

For the issuance of certificates of need, Section 4 exempts DACCSH from the requirement that they foster the special needs and circumstances of health maintenance organizations.

Section 4 outlines new, exclusive criteria to determine need to offer new institutional health services if under the construction, development, or other establishment of a new health care facility. 

The remaining sections add DACCSH to the current code sections regarding revoking certificates of need; participation as a provider of medical assistance and monetary penalties for termination of participation; and annual reporting requirements.

The committee substitute received a Do Pass recommendation from the Special Committee on Certificate of Need and comes to the House Floor under the Modified Structured Rule.

Chairman Cooper�s opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

This legislation would change the current CON laws to allow a destination hospital to apply for a CON.  The bill requires that 65% of the proposed patients of such a hospital would come from out of state, and that 3% of its adjusted annual gross revenues would go to treating Georgia indigent and charity patients.

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

The desire of Cancer Treatment Centers of America to build a hospital near the Atlanta airport to accommodate out of state patients from the southeast region of our country is what motivated the author to introduce this bill.

THIS LEGISLATION:

• Reduces the Tax Burden on our Citizens:

This facility would provide a large number of jobs for the area and would add a significant amount of money to our system from taxes at both the county and state level.