HF 2263 (LSB 5434YH (9) 87)

HOUSE FILE 2263

BY  R. TAYLOR

A BILL FOR

An Act relating to the certificate of need process applicable to the planning and delivery of health services.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 135.61, subsection 18, paragraphs c, g, h, i, j, and l, Code 2018, are amended to read as follows:
   c.  Any capital expenditure, lease, or donation by or on behalf of an institutional health facility in excess of one five million five hundred thousand dollars within a twelve-month period.
   g.  Any acquisition by or on behalf of a health care provider or a group of health care providers of any piece of replacement equipment with a value in excess of one five million five hundred thousand dollars, whether acquired by purchase, lease, or donation.
   h.  Any acquisition by or on behalf of a health care provider or group of health care providers of any piece of equipment with a value in excess of one five million five hundred thousand dollars, whether acquired by purchase, lease, or donation, which results in the offering or development of a health service not previously provided. A mobile service provided on a contract basis is not considered to have been previously provided by a health care provider or group of health care providers.
   i.  Any acquisition by or on behalf of an institutional health facility or a health maintenance organization of any piece of replacement equipment with a value in excess of one five million five hundred thousand dollars, whether acquired by purchase, lease, or donation.
   j.  Any acquisition by or on behalf of an institutional health facility or health maintenance organization of any piece of equipment with a value in excess of one five million five hundred thousand dollars, whether acquired by purchase, lease, or donation, which results in the offering or development of a health service not previously provided. A mobile service provided on a contract basis is not considered to have been previously provided by an institutional health facility.
   l.  Any mobile health service with a value in excess of one million five hundred thousand million dollars.
    Sec. 2.  Section 135.61, subsection 21, Code 2018, is amended to read as follows:
   21.  “Outpatient surgical facility” means a facility which as its primary function provides, through an organized medical staff and on an outpatient basis to patients who are generally ambulatory, surgical procedures not ordinarily performed in a private physician’s office, but not requiring twenty-four hour hospitalization, and which is neither a part of a hospital nor the private office of a health care provider who there engages in the lawful practice of surgery. “Outpatient surgical facility” includes a facility certified or seeking certification as an ambulatory surgical center, under the federal Medicare program or under the medical assistance program established pursuant to chapter 249A.  “Outpatient surgical facility” does not include an outpatient surgical facility, located in a county with a population over thirty thousand, that is offered or developed, and owned by, a group of health care providers.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the certificate of need process under Code chapter 135 relative to the planning and delivery of health services. The bill increases the threshold amount applicable to new institutional health services or changed institutional health services that must be met to be subject to the certificate of need process from $1.5 million to $5 million for all of the following:

  1. Any capital expenditure, lease, or donation by or on behalf of an institutional health facility in excess of such amount within a 12-month period.

  2. Any acquisition by or on behalf of a health care provider or a group of health care providers of any piece of replacement equipment with a value in excess of such amount whether acquired by purchase, lease, or donation.

  3. Any acquisition by or on behalf of a health care provider or group of health care providers of any piece of equipment with a value in excess of such amount, whether acquired by purchase, lease, or donation, which results in the offering or development of a health service not previously provided. A mobile service provided on a contract basis is not considered to have been previously provided by a health care provider or group of health care providers.

  4. Any acquisition by or on behalf of an institutional health facility or a health maintenance organization of any piece of replacement equipment with a value in excess of such amount, whether acquired by purchase, lease, or donation.

  5. Any acquisition by or on behalf of an institutional health facility or health maintenance organization of any piece of equipment with a value in excess of such amount, whether acquired by purchase, lease, or donation, which results in the offering or development of a health service not previously provided. A mobile service provided on a contract basis is not considered to have been previously provided by an institutional health facility.

  6. Any mobile health service with a value in excess of such amount.
   The bill also amends the definition of outpatient surgical facility by excluding from the definition an outpatient surgical facility, located in a county with a population over 30,000, that is offered or developed, and owned by, a group of health care providers, thereby exempting these specific outpatient surgical facilities from the certificate of need process.