House Select Committee on Certificate of Need Process and Related Hospital Issues Page 12
6. The Committee recommends the General Assembly increase the monetary
threshold for major medical equipment from seven hundred fifty thousand
dollars to one and a half million dollars.
Finding:
The Committee heard from parties who had an approved Certificate of Need application and,
due to a change in circumstances, encountered difficulty making alterations to its Certificate of
Need. This need for alterations is only increased during difficult economic situations. The
Committee finds that looking into methods by which a modification to an approved Certificate of
Need application could be made is prudent.
Recommendation:
7. The Committee recommends studying ways to make it easier and more
efficient to modify or change an approved Certificate of Need, particularly in
light of an applicant's change in financial situation, and under which
instances this should apply.
Finding:
Pursuant to G.S. 131E-177, the Department of Health and Human Services is designated as the
State Health Planning and Development Agency. The State Health Coordinating Council (SHCC) is
responsible for directing the development of the annual State Medical Facilities Plan. The SHCC
was established via executive order by the Governor and contains appointments from the Governor.
The SHCC is subject to ethics guidelines also established via Governor executive order. The
Committee received comment expressing a need for more transparency and accountability by the
State Health Coordinating Council and its decisions affecting the development of the State Medical
Facilities Plan. The Committee finds, while it is necessary for the State Health Coordinating Council
members to have experience and expertise in the health care industry, there are concerns of member
conflicts of interest, the potential for undue influence by a single individual, and public perception.
The Committee finds that these concerns could be lessened by changing the current appointment
process of members to the State Health Coordinating Council.
Recommendations:
8. The Committee recommends a codification of the State Health Coordinating
Council. The appointments to the Council should be divided amongst the
legislative and executive branches.
9. Upon codification of the State Health Coordinating Council, the members
should adhere to ethical standards and conflict of interest provisions set by
the General Assembly. These ethical standards should strive to eliminate any
appearance of undue influence.