September 4th, 2008

Yesterday’s House Insurance Committee’s public hearing focused solely on proposed legislation that would reinstate Pennsylvania’s certificate of need (CON) process for healthcare facilities.  Pennsylvania had a CON process until 1996, which required approval from the state before new health care facilities could be built.  Existing facilities would also have to obtain state approval before making expansions or purchasing major/very expensive equipment.

Advocates of CON reinstatement, such as bill sponsor Rep. Phyllis Mundy (D-Luzerne) say that since the CON process expired there has been a “mind boggling” increase in healthcare facilities.  These facilities, she says, lead to overuse unneccessary costs for the state’s healthcare system.

Testifying against CON was the Hospital & Healthsystem Association of Pennsylvania, the Pennsylvania Medical Society, and the founder of Grandview Surgery and Laser Center.  All believe that the CON process only politicized facility approval, while doing little to control costs.  

Dr. Peter Lund, president of the Pennsylvania Medical Society, stated that since the proposed legislation is drafted so much like the old program, his organization ”does not support going back in time and reliving the problems associated with a CON.”  He emphasized the importance of keeping free market in healthcare for consumers and to drive down costs. 

Read the full Patriot-News article on the hearing or view the full testimony from the Pennsylvania Medical Society.