Sen. Brady: Study shows hospital planning board does not help health care consumers          Send a link to a friend

[February 23, 2007]  SPRINGFIELD -- A study ordered by lawmakers last November has revealed that the state board that oversees the construction and expansion of hospitals and other health care facilities does not save Illinois citizens any money or improve their access to health care, according to state Sen. Bill Brady, R-Bloomington.

On Nov. 15, 2006, lawmakers adopted House Resolution 1497, which asked the Commission on Government Forecasting and Accountability to study the effectiveness of the Illinois Health Facilities Planning Board in containing health care costs and protecting health care access. In December 2006, the commission hired the Lewin Group, an objective third-party consulting firm based in Falls Church, Va., to study the planning board.

The Commission on Government Forecasting and Accountability released the Lewin Group report Feb. 22.

"The Lewin Group report is in, and its findings are dramatic," Brady said. "It shows that there is no data-driven reason for the existence of the Health Facilities Planning Board, which makes a strong case for disbanding the board and allowing decisions about the location and expansion of health care facilities to be made locally and regionally. I am pleased steps were finally taken to determine the best course for the board, as recommended by a Senate Republican task force I chaired last summer. In fact, many of the Lewin Group suggestions are similar to the findings of our task force."

The Senate Republican Health Facilities Planning Board Task Force was formed in June 2006 to take a closer look at the politically charged and increasingly litigious process that had become all too common in determining health facility construction and modification. The task force conducted public hearings in Chicago, Springfield and Plainfield to examine the efficiency, objectivity and utility of the board. The task force report, issued Nov. 29, 2006, found that structural and operational reforms are necessary for the board's efficient operation. It also recommended further in-depth study by a larger General Assembly task force, which would then report on the best course for the board.

[Editor's note: It was the Illinois Health Facilities Planning Board's decision to retract the Certificate of Need for Lincoln Developmental Center in 2002 that closed the doors of the 150-year-old institution. The action placed hardship and burden on numerous parents of residents who did not want to see the institution closed. The action also disrupted the local economy, as the facility was a major employer, drew state and federal operations funding, and regular visitors.]

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Lewin findings

There is no empirical evidence that the Certificate of Need process has any impact on health care cost containment. This finding was realized by comparing health care costs of states with a CON process to states without a CON process.

There is no empirical evidence that the CON process improves the quality of health care services. There is no empirical evidence that the CON process does anything to protect safety-net providers. To determine this, Lewin compared the operating margins of safety-net providers in CON states to the operating margins of safety-net providers in non-CON states.

There was not a significant difference in the operating margins of safety-net providers in the differing atmospheres, suggesting that the CON process does very little to assist safety-net providers.

Lewin recommendations

Extend the CON process for a three-year period in which the state will conduct a comprehensive study on the impact CON has on safety-net providers.

Evaluate non-CON related means of supporting safety-net providers.

Consider establishing a more proactive board that would focus on a blueprint for health facility development and promote specific initiatives (board should be proactive in planning).

Address issues related to board size and structure; the board size should be increased and individuals with direct experience in health care provision should be on the board.

Reasonable compensation should be awarded to board members.

The board's workload should be focused more specifically on areas that appear to have the greatest impact on the health care delivery system.

[Text from news release sent on behalf of Sen. Bill Brady and received from Illinois Senate Republican staff]

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