This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0453 - Revises the certificate of need law to address health care services rather than health care facilities
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 1838-01
BILL NO.: SB 453
SUBJECT: Changes to the Certificate of Need Laws
TYPE: Original
DATE: March 1, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | |||
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Social Services - Division of Medical Services (DMS) stated this proposal will not have a fiscal impact for their division. Currently a rate increase may be granted if a facility (hospital or nursing facility) has a Certificate of Need (CON) for any renovations/replacements/additions. If the proposal is passed, it is assumed that the DMS will change its regulations to allow a facility to request and receive a rate adjustment for the same type of replacements and additions that currently require a CON. It is also assumed that the change in the CON requirement will not significantly increase the number of replacements and additions that are done.
Officials from the Department of Health (DOH) stated the review of services, regardless of costs, would result in additional applications. However, this would be offset by the reduction in the number of applications submitted as a result of the elimination of the review for replacement equipment and facilities. The DOH assumes this proposal will not fiscally affect their agency.
Officials from the Department of Mental Health assume that this proposal will not fiscally affect their agency.
Officials from the Office of Attorney General did not respond to our request for fiscal impact. Oversight assumes this proposal would not fiscally impact their agency.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Small Business | |||
| No direct fiscal impact to small businesses would be expected as a result of this proposal. | |||
DESCRIPTION
This proposal changes the certificate of need (CON) law. Certain definitions are removed or changed, including a change in the name of the Health Facilities Review Committee to the Health Services Review Committee and the definition of "new health service." This proposal also replaces references to "facilities" with "services" or "health services." In addition,
Section 197.315.17, which allows certain intermediate care facilities to obtain a CON, has been deleted.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Social Services
Department of Health
Department of Mental Health
NOT RESPONDING: Office of Attorney General
Jeanne Jarrett, CPA
Director
March 1, 1999