TowerScope Volume 14, Issue Nr. 7, July 1977

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SAINT JOSEPH HOSPITAL
Volume 14
Number 7
July, 1977
Major Health Care Legislation Passed
Following is a continuation of the
series on health care legislation by
Rep. Wellington E. Webb:
As this year's legislative session
drew to a close, several pieces of
major health care legislation had
been passed. House Bill 1582,
commonly referred to as the "rate
review" bill became law, as well as
House Bill 1580, which adds physi-
cian offices to facilities subject to
certificate of need.
Colorado is one of the first Rocky
Mountain states to pass a rate re-
view bill, which is an attempt to
control rising hospital costs. The
significant aspects include setting
up a three member Colorado Hos-
pital Commission, appointed by the
Governor and confirmed by the
Senate. A selection panel will prob-
ably be set up to review resumes
and narrow the commission mem-
bers to a possible nine or ten for
the Governor to choose from.
The Commission requires hospitals
to maintain uniform accounting and
reporting systems, and classifies
hospitals according to size. The
Commission will review and ap-
prove prospective budgets, financial
requirements and revenue and sta-
tistics. Hospitals will be required to
file annual financial and statistical
reports, and charges must be ap-
proved by the commission before
becoming effective. Medicaid is not
affected by this bill.
While the commission is indepen-
dent, it is intended that it be linked
closely to state health planning and
regulatory agencies. Members will
consult with other state agencies
and health systems agencies about
the development and implementa-
tion of state health policies, and
cannot approve funds for something
which a certificate of need has
been denied. The Commission will
participate in health planning on
issues relating to costs and review
and comment on all capital expen-
diture projects requiring review by
the State Certificate of Public Ne-
cessity Act.
A health care advisory board, com-
posed of 12 members appointed by
the Governor, will assist the Com-
mission on policy and rule-making
procedures. Hospitals will be as-
sessed annually to pay for admin-
istration of the system.
The Commission will be created
July 1, 1977, with implementation of
the law beginning Jan. 1, 1978. It
will have to be reenacted in 1980; if
it is not achieving desired effects, it
may be repealed at that time.
House Bill 1580 strengthens the
certificate of need process. Circum-
stances under which a facility would
be required to obtain a certificate of
public necessity have been broad-
ened to include private physician
offices, when equipment valued at
$200,000 or more is purchased. In
addition, a certificate of public ne-
cessity would be required when a
new health care service is offered
which requires a change in licen-
sure, regardless of the amount of
capital or leased expenditure. Also,
when property of a hospital or
health care facility is sold or trans-
ferred, and involves an expenditure
or lease valued at $100,000 or
more, a certificate of public neces-
sity is needed.
A special study committee is set up
under the act to review the certifi-
cate of public necessity act and
recommend changes. The new act
takes effect July 1, 1977.
Additional bills which passed this
session include the c'assification of
continued on page 6
Rx: Fun
Saint Joseph
Hospital Picnic
Wednesday
Aug. 3 at Elitches
11:00 a.m.-11:00 p.m.
Anybody can swallow this medicine,
the perfect tonic for the summer
doldrums. Safe for both children
and adults, it may be taken all day
in heavy doses at will.
You can pick up your prescription in
the Mullen employee lounge from
July 15 through July 29, Monday
through Friday, from 7:00 - 9:00
a.m. and 2:00 - 4:00 p.m. Your
ticket to fun costs only $3.00, which
includes admission, unlimited rides,
food and entertainment.
Food will be served in the LaFonda
Pavilion from 11:00 a.m. - 1:00 p.m.
and 5:00 - 7:00 p.m. The menu will
include a hot dog, salad, beverage
and dessert. Scheduled activities in
the LaFonda Pavilion include bingo
with prizes from 1:00 - 2:00 p.m.
and 7:00 - 8:00 p.m. From 8:00 -
9:00 p.m. the first annual Saint
Joseph Hospital Roast of Si Houli-
han will be held, and at 9:00 p.m.
dancing will begin.