Department of Justice and Federal Trade Commission criticize Illinois Certificate-of-Need Law

Posted on: September 18, 2008  |   Author: Michelle
Filed Under: Antitrust, Hospitals & Health Systems, Other   |   Leave a Comment

The Chicago Tribune (9/13, Bruce Japsen) reported that the Department of Justice (DOJ) and the Federal Trade Commission (FTC) told “an Illinois task force evaluating the merits of the state’s certificate-of-need law” that the law, which is “designed to regulate hospital construction and other health-facility expansions, undercuts consumer choice and weakens ‘markets’ ability to contain healthcare costs.’”

Illinois Health Facilities Planning Board has been in place for a number of years and has been subject to controversy, namely that it favors “projects pushed by influential lobbyists.” Critics also contend that its rules thwart “potential competition and innovation should hospitals want to build specialized facilities.” Proponents of the board, however, say “hospitals that are allowed to build unregulated tend to expand in affluent areas to tap wealthy patients with health insurance.”

According to the article, “the FTC and Justice Department said certificate-of-need laws create opportunities for ‘existing competitors to exploit’ the process or delay new competition.” The two federal agencies weighed in ahead of a hearing today. The federal regulators’ opinions are likely to “be part of a report the task force will submit to the Illinois legislature this year for possible changes.”
Illinois lawmakers are currently examining whether the Health Facilities Planning Board and its rules are necessary. The agencies’ input likely will be part of a report the task force will submit to the Illinois legislature this year for possible changes.

http://www.chicagotribune.com/business/chi-sat-con-law-hospitals-sep13,0,4597093.story

CA puts the kibosh on celebrity medical record snooping

Posted on: September 18, 2008  |   Author: Tyler
Filed Under: Health Information, Hospitals & Health Systems, Other, Public Health Policy   |   Leave a Comment

In response to recent highly publicized medical record confidentiality breaches involving the likes of Brittany Spears, Farrah Fawcett and California First Lady Maria Shriver at UCLA medical center, CA lawmakers two pieces of legislation (AB 211 and SB 541) are working their way through the California State Legislature. These bills strengthening existing medical record privacy laws and propose a new state Office of Health Information Integrity to oversee ensure HIPAA compliance, investigate breaches and assess fines upto $250,000 for violations. The new office will have authority to refer repeat offenders or aggregious violations to the appropriate licensure boards.

Critics of the bills argue that the cost of the measure will be passed directly to patients, adding further burden to the already over-burdened US medical consumer.
California has been a trend-setter in many other areas of the law, and this may be just the most recent opportunity for other states to follow California’s lead.

The LA Times August 27, 2008