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Legislative News |
Virginia’s Certificate of Public Need (COPN) Work Group Meets Again
By Lauren Schmitt
Commonwealth Strategy Group
Virginia’s Certificate of Public Need (COPN) work group met for the second time on Wednesday, August 19. Dr. Abbott Byrd (Atlantic Orthopaedic Specialists, Virginia Beach) is VOS’s representative on the work group and continues to do an excellent job articulating our position and the need for COPN reform.
There were multiple presentations, including one provided by an attorney from the Federal Trade Commission (FTC). The FTC strongly supports a full repeal of COPN and has advocated for its repeal in other states. The presentation focused on the fact that COPN laws have failed in all of their intended purposes. The attorney reiterated multiple times that COPN laws do not help control health care costs and they only hurt consumers by stifling competition.
We also learned about other states that have either repealed their COPN laws or narrowed their scope. There are now 14 states that do not have any COPN laws. In addition, North Carolina will begin phasing out their COPN program once they are able to pass their budget.
Secretary Hazel and Eva Hardy, the work group Chair, will put together a list of topics for the next meeting for the members to discuss and potentially reach consensus. The group will meet three more times before the end of the year and will provide policy recommendations to the General Assembly.
The next meeting will be September 28. Thank you to everyone for your support, and especially to Dr. Byrd who disrupted his vacation to travel to Richmond for the meeting. You can find more information about the work group and look at the meeting materials at its website: http://www.vdh.virginia.gov/Administration/COPN.htm
If you want to learn more about our COPN advocacy efforts or are interested in connecting with your legislators about this issue, please contact me.
Lauren@commonwealthstrategy.net
(804) 484-4751
Dr. Byrd Appointed to COPN Review Work Group
Virginia Secretary of Health and Human Resources Bill Hazel, MD has appointed J. Abbott Byrd III, MD to a stakeholder workgroup that will review the Commonwealth’s Certificate of Public Need (COPN) laws and processes and make recommendations for any changes to the system. Dr. Byrd is a partner with Atlantic Orthopaedic Specialists, an independent practice with locations throughout Hampton Roads.
The creation of the workgroup was a compromise result of Senate Bill 1283, an HCA-backed measure that would have made major changes to what “projects” are exempt from COPN requirements. Most hospital systems vehemently defend COPN requirements to control health care services in a region.
Many orthopaedic surgeons and other physicians argue that COPN laws only protect hospital monopolies, resulting in fewer options for patients and higher prices for services. VOS will report on the workgroup’s progress. The legislative charge for the COPN work group is below.
From Senate Bill 1283 (2015, Martin)
The Secretary of Health and Human Resources shall convene a workgroup that shall include health care providers, consumers of health care services, representatives of the business community, and other stakeholders to review the current certificate of public need process and the impact of such process on health care services in the Commonwealth, and the need for changes to the current certificate of public need process. In conducting such review, the workgroup shall evaluate: (i) the process by which applications for certificates of public need are reviewed, the criteria upon which decisions about issuance of certificates of public need are based, and barriers to issuance of a certificate of public need; (ii) the frequency with which applications for a certificate are approved or denied; (iii) fees charged for review of applications for a certificate of public need and the cost to the Commonwealth of processing applications for a certificate of public need; (iv) applications for and the impact of the current certificate of public need process on establishment of new health care services, including the establishment of new intermediate-level or specialty-level neonatal special care services and open heart surgery services and the addition of new beds or operating rooms at existing medical care facilities; (v) the relationship between the certificate of public need process and the provision of charity care in the Commonwealth and the impact of the certificate of public need process on the provision of charity care in the Commonwealth; (vi) the impact of the certificate of public need process on graduate medical education programs and teaching hospitals in the Commonwealth; (vii) the efficacy of regional health planning agencies, the role of regional health planning agencies in the certificate of public need process, and barriers to the continued role of regional health planning agencies in the certificate of public need process; and (viii) the frequency with which the State Medical Facilities Plan is updated and whether such plan should be updated more frequently. The work group shall develop specific recommendations for changes to the certificate of public need process to address any problems or challenges identified during such review, which shall include recommendations for changes to the process to be introduced during the 2016 Session of the General Assembly and any additional changes that may require further study or review. In conducting its review and developing its recommendations, the workgroup shall consider data and information about the current certificate of public need process in the Commonwealth, the impact of such process, and any data or information about similar processes in other states. The Secretary shall report on the recommendations developed by the work group by December 1, 2015.
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