Georgia approves $1.5B Children’s Healthcare of Atlanta hospital: 3 notes

https://www.beckershospitalreview.com/facilities-management/georgia-approves-1-5b-children-s-healthcare-of-atlanta-hospital-3-notes.html?origin=cfoe&utm_source=cfoe

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Georgia approved Children’s Healthcare of Atlanta’s certificate-of-need application to replace the 325-bed children’s hospital in Atlanta with a larger one containing 446 beds, also located in Atlanta, according to Georgia Health News.

Here are three things to know:

1. Children’s Healthcare of Atlanta received the approval in early November after filing the CON in June. No other hospital system opposed the construction. The $1.5 billion project is the largest in Georgia’s CON program history. 

2. Children’s Healthcare of Atlanta’s CEO Donna Hyland said in a statement to Georgia Health News the hospital is “pleased that the Department [of Community Health] recognized the long-term value of this new hospital for Georgia’s current and future generations of children. We remain laser-focused on top-quality patient care and operational excellence at all of our facilities as we plan to start construction on the new hospital in early 2020.”

3. To meet growing demand, Children’s Healthcare of Atlanta announced plans for its new hospital in November 2017. The proposal includes an advanced pediatrics center, support buildings, over 20 acres of green space, walking trails, a central energy plant, parking decks and funding for nearby road improvements.

 

 

 

Healthcare Competition Needs a Priority Check and Reset, Experts Say

http://www.healthleadersmedia.com/leadership/healthcare-competition-needs-priority-check-and-reset-experts-say

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Farzad Mostashari, MD, the former National Coordinator for Health IT at the Department of Health and Human Services, and Martin S. Gaynor, a professor of economics and health policy, discuss how policy helps and/or harms competition in the healthcare marketplace.

Despite the near-universal agreement that the U.S. healthcare delivery system should remain market-based, there has been surprisingly little talk amongst government policy makers and private payers about the potential for stifling competition with over-regulation.

An essay this month in JAMA calls for a re-examination of how healthcare rules, regulations, and policies help or harm competition in the healthcare marketplace.

Farzad Mostashari, MD, the former National Coordinator for Health IT at the Department of Health and Human Services, and Martin S. Gaynor, a professor of economics and health policy at Carnegie Mellon University, two authors of the essay, spoke with HealthLeaders last week. The following is a lightly edited transcript.

CHI Franciscan Health to spend more than $530M on Harrison Medical Center expansion

http://www.beckershospitalreview.com/facilities-management/chi-franciscan-health-to-spend-more-than-530m-on-harrison-medical-center-expansion.html

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Tacoma, Wash.-based CHI Franciscan Health has submitted a letter of intent to the Washington State Department of Health requesting regulatory approval to invest in a new hospital at Harrison Medical Center-Silverdale (Wash.). The LOI is the first step in the certificate of need application.

CHI Franciscan Health, which affiliated with Harrison Medical Center in 2014, plans to invest more than $530 million on the expansion project. The project will be divided into two phases.

Phase one, which will cost $283 million, will involve the transfer of 168 inpatient beds from the Harrison Medical Center-Bremerton (Wash.) license while retaining 85 licensed beds at Bremerton. Harrison Medical Center-Bremerton, which houses 253 beds, will close after the completion of phase one in Silverdale.

The second phase will add the rest of the beds, based on demand, and is expected to cost $201 million.

CHI Franciscan Health plans to submit the full CON application to state regulators later this year.

It’s NC Hospitals vs. Koch Brothers in CON Battle

http://www.healthleadersmedia.com/community-rural/its-nc-hospitals-vs-koch-brothers-con-battle?spMailingID=9138342&spUserID=MTMyMzQyMDQxMTkyS0&spJobID=942934540&spReportId=OTQyOTM0NTQwS0

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The push to eradicate certificate of need statues in several states is spearheaded by a political advocacy group that claims a repeal of the regulations would “lower healthcare costs and improve medical access for millions of citizens.”

CERTIFICATE OF NEED: STATE HEALTH LAWS AND PROGRAMS

http://www.ncsl.org/research/health/con-certificate-of-need-state-laws.aspx

Map of 50 states with or without CON programs, 2015

 

Certificate of Need (C.O.N.) programs are aimed at restraining health care facility costs and allowing coordinated planning of new services and construction.  Laws authorizing such programs are one mechanism by which state governments seek to reduce overall health and medical costs.  Many “CON” laws initially were put into effect across the nation as part of the federal “Health Planning Resources Development Act” of 1974.  Despite numerous changes in the past 30 years, about 36 states retain some type of CON program, law or agency as of 2016.