Joint work group aims to reform state law that increases healthcare costs.
Virginia Legislature Poised to Take On COPN in 2017
Lawmakers in the Virginia House and
Senate have formed a joint work group focused on reforming the state’s
certificate of public need (COPN).
Under current law, medical providers
must get State Board of Health approval in order to expand or build new
healthcare facilities or to make major equipment purchases. This law, which is
decades old, ultimately prevents competition and raises healthcare costs for
consumers. NFIB has been pushing for repeal of this regulation.
Earlier this year, the House passed
two bills that would have reformed or mostly removed this burdensome
regulation. One bill would have eliminated the need for a COPN for many
healthcare facility and project categories. The other bill would have kept a
COPN in place for general hospitals, but removed it for other services as well
as established a faster timeline for reviewing applications. Ultimately,
however, the bills failed with a hard push back from the state hospital
association.
In a press release announcing the
working group, Virginia House Speaker William J. Howell and Senate President
Pro-Tempore Stephen D. Newman made statements.
“The time has come to reform
Virginia’s outdated COPN laws,” said Speaker Howell. “For nearly 40 years,
Virginia’s COPN laws have stifled innovation, limited competition,
unnecessarily raised costs, and limited access to quality healthcare. The House
of Delegates advanced an innovative COPN reform proposal last year. We are
committed to continuing that effort. This working group will give legislators
the opportunity to work directly with individual healthcare providers who are
willing to engage productively on reforms. I look forward to reviewing the
legislative proposals presented by the working group as we prepare for the 2017
General Assembly session.”
“Virginia’s healthcare suffers because our COPN laws limit consumer choice and
stifle innovation,” said Senator Newman. “Removing the COPN barrier will create
competition that will improve access to care and control costs. These benefits
are why a broad coalition of advocacy groups from across the Commonwealth
support COPN reform. The Senate is committed to helping our community hospitals
through this process while ensuring patients, nurses, and doctors have free
market choices in their healthcare and employment. Over the coming months, we
will begin listening and hearing from the various stakeholders in order to
further refine reform legislation that can ultimately pass the General
Assembly.”
