Friends of Certificate of Need Denounce Senate Bill



Contact: Kelly Rossman-McKinney
(517) 749-0529 (c), 517-487-9320 (o)
Tuesday, Sept. 16, 2014 

Friends of Certificate of Need denounce Senate bill that would ignore health care cost containment

LANSING, Mich. – The Michigan Senate propped up McLaren Healthcare’s last-ditch effort to build a $300 million, 200-bed hospital tower in Independence Township by introducing legislation Tuesday that would circumvent previous state rulings against the unnecessary overbuild of such a facility.

However, Senate Bill 1073 was met by resounding disapproval from a large coalition of Michigan business, labor and health care organizations.
The Friends of Certificate of Need – which includes a broad range of Michigan business, consumer, hospital, payer, union and other associations – actively supports Certificate of Need as an effective tool to avoid unnecessary costs while improving access to quality health services.

“This (legislation) represents a not-so-thinly disguised effort to give McLaren Healthcare something that the state’s Certificate of Need approval process has repeatedly rejected,” said Bret Jackson, president of the Economic Alliance for Michigan. “The end result undermines an essential state process that is specifically designed to keep health care increases to a minimum.”

Judge Colleen O’Brien of Oakland County Circuit Court ruled against McLaren in December after it had filed suit in June 2013 to reverse the original Department of Community Health decision to deny the application – which is now more than two years old. Under its original February 2012 Certificate of Need application, McLaren asked to move 200 unused beds from its McLaren Oakland Hospital in Pontiac to a new hospital it plans to build.

The Economic Alliance for Michigan has focused on the rapid rise in health care costs because it places an increasingly difficult burden on Michigan businesses and generates pressure to reduce jobs, cut benefits, and/or increase costs for workers.

“The Certificate of Need program exists to balance cost, quality and access and it has served Michigan residents and taxpayers well,” said Grand Rapids Chamber of Commerce vice president Andy Johnston. “Like anything, it can always use review and discussion, but with the changes occurring in our health care system, now is not the time to eliminate or weaken CON.”

“The Affordable Care Act is already placing a significant burden on the small business community, many of whom are seeing insurance premiums rise by between 20 percent and 100 percent, or more,” said Scott Lyon, senior vice president of the Small Business Association of Michigan. “Smart decisions about value purchasing, including taking a hard look at quality and costs should be uppermost in the minds of legislators.”

“We need lawmakers to understand that health care costs are still rising, and rising costs force premiums higher,” Lyon added. “As premiums rise, fewer small business owners can afford to offer coverage to their workers. Legislative efforts should be focused on finding ways to contain health care costs for individuals, small and larger businesses alike.”

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