Certificate of Need Program

State Senator Rob Bradley (R-Fleming Island) filed legislation today (SB 676) which would eliminate the Certificate of Need (CON) Program at the Agency for Health Care Administration.  Under existing law, health care providers must obtain a certificate of need prior to constructing new hospitals, nursing homes, hospices or intermediate care facilities in the state or to convert from one type of health care facility to another.  The CON program drives up health care costs by limiting health care choices for consumers.  In removing the program, Senate Bill 676 will shift the requirements from CON to licensure for new providers or facilities providing new services.
“By eliminating the state’s restrictive CON process we’ll increase competition and drive down the cost of health care for Floridians,” said Senator Bradley.  “For years, this cumbersome process has been used to block the expansion of facilities and restrict competition.  So, in addition to driving costs, we should also see a significant economic impact in terms of the creation of new jobs by removing this barrier.”
The Governor’s office is also backing Senator Bradley’s legislation.  Governor Rick Scott said, “I’ve traveled across our state and spoken with Floridians who have been charged unconscionable prices for procedures. This session, I want to fight to make the healthcare system fair for families and ensure health care works for patients and not for hospitals’ bottom lines. I look forward to working with Senator Bradley to champion this legislation as we continue to help bring greater access, quality, transparency and fairness to patients.”
The bill authorizes the Agency for Health Care Administration to develop licensure rules for new providers or facilities providing new services and sets guidelines for the licensure of hospitals and hospice facilities.