A bill has been introduced in the Alabama Legislature that would downsize state government by eliminating the requirement that a hospital obtain permission from the state before it can expand, relocate, or add hospital beds.
House Bill 130 is sponsored by State Rep. Andrew Sorrell (R-Muscle Shoals).
The legislation would end the state’s certificate of need program for health care services and facilities. It would abolish the Certificate of Need Review Board, the State Health Planning and Development Agency, the Statewide Health Coordinating Council, and the Health Care Information and Data Advisory Council.
Sorrell told 1819 News that eliminating the state bureaucracies would add free-market principles to health care in the state and allow healthcare providers to be more responsive to the needs of the public.
“I've introduced this bill because I don't believe the government should get to decide how many hospital beds we have and where we have them in Alabama,” Sorrell said. “Government needs to get out of the way and let the free market work. No one would be in favor of a government board determining how many restaurants could be in a city; likewise, an unelected board of bureaucrats has no business dictating to private healthcare companies whether or not they can expand their operations in Alabama. During the pandemic, we have had a shortage of hospital beds. I believe this was caused in part by the government artificially limiting the supply.”
According to the synopsis, HB130, “Relating to public health planning; to amend Sections 22-12A-3, 22-21-336, 22-21-341, and 31-5A-11, Code of Alabama 1975; to repeal Article 1, commencing with Section 22-4-1, of Chapter 4 of Title 22, Code of Alabama 1975; to repeal Article 2, commencing with Section 22-4-30, of Chapter 4 of Title 22, Code of Alabama 1975; to repeal Article 9, commencing with Section 22-21-260, of Chapter 21 of Title 22, Code of Alabama 1975; to eliminate the certificate of need program for health care services and facilities; to abolish the Certificate of Need Review Board, the State Health Planning and Development Agency, the Statewide Health Coordinating Council, and the Health Care Information and Data Advisory Council; and to update related code sections to remove references both to the program and to the authority, responsibilities, and powers of the Certificate of Need Review Board, the State Health Planning and Development Agency, the Statewide Health Coordinating Council, and the Health Care Information and Data Advisory Council.”
Critics of deregulation argue that eliminating certificates of need would open the hospitals to more cutthroat competition for patients. Supporters of eliminating the regulation and the regulators point out the fact that there has been enormous competition and consolidation of hospitals in the last 50 years, particularly in the Birmingham area, even with the certificate of need program in place.
HB130 has been assigned to the House Health Committee.
Andrew Sorrell is a Republican candidate for State Auditor.
Tuesday will be day three of the Alabama regular legislative session. The Alabama House will convene at 2:00 p.m. and the Senate at 3:30 p.m.
To connect with the author of this story, or to comment, email brandon.moseley@1819News.com.
