Sen. likens Va. to 'Soviet Union of healthcare': 7 things to know about the Va. health debates

Virginia's general assembly has been entertaining a debate on the state's power to decide when and where medical facilities can be built or expanded, afforded through the certificate of public necessity program, reports Daily Press.

The debate boils down to a central question raging at hospital and health systems nationwide: where to find outside revenue for medical expenses, and how to get it into hospital pockets.

Below are seven things to know about Virginia's health debates. 

1. Virginia is one of 36 states with some form of a certificate of need requirement.

2. Many hospital officials don't want to see the certificate of public necessity narrowed or eliminated. Mary Mannix, CEO of Augusta Health in Fishersville, argued the state's regulatory power benefits hospitals and health systems by preventing organizations from giving preference to high-profit medical services over fiscal losers, like obstetrics and psychiatric care.

3. House Republicans have proposed a number of regulatory reforms, from repealing only requirements for CT scan and MRI facilities for hospitals, to an immediate repeal of all CON requirements except for rural hospitals and nursing homes.

4. House representative Richard Bell (R-Staunton) said the state's regulatory power eliminates competition, thereby increasing medical care costs. Similarly, Sen. Steve Newman (R-Lynchburg) said the certificate of necessity program encourages hospital mergers rather than competition, adding "we're close to being the Soviet Union of healthcare," reports Daily Press.

5. Gov. Terry McAuliffe's aggressive, two-year battle to expand state Medicare programs still rankles with Republicans in the assembly. The governor's Medicaid battle sparked opposition and resentment from many Republicans in the assembly, adding fire to the current healthcare debate.

6. The general assembly is also considering a proposal, supported by the VirginiaHospital and Healthcare Association, to impose a bed tax as a way to draw funding for uncompensated care costs at hospitals.

7. The Virginia Hospital and Healthcare Association believes the certificate of public necessity requirement should remain intact, though the group recommends streamlining efforts. VHHA shelled out $301,000 to legislative candidates last election cycle, reports Daily Press

 

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