South Carolina Hospital Association Newsletter
     
Inside this issue
  Senate Finance Subcommittee Adopts CON Proviso  
  The Senate Finance Health and Human Services (HHS) Subcommittee met this week and adopted a proviso that would exempt projects undertaken during the suspension of the Certificate of Need (CON) program from CON approval. The proviso would only apply to the current fiscal year, and was offered by Senator Joel Lourie (D-Richland).
 
The CON process has been in limbo since the House sustained a gubernatorial veto of the program's funding in June of last year. Department of Health and Environmental Control (DHEC) Director Catherine Templeton immediately followed with a statement announcing her agency's decision to suspend the CON program beginning July 1, 2013. That suspension led the SCHA, South Carolina Healthcare Association, and several hospitals and nursing homes to file a petition with the South Carolina Supreme Court to require DHEC to administer the CON program as required by state law. The oral arguments in the case were presented last month, but there is no deadline for the Court's ruling.
 
Licensing reports from DHEC indicate that several facilities have moved forward with projects that would require a CON.
 
The proviso adopted this week would establish a "grandfather" period from July 1, 2013 to June 30, 2014 that would protect all projects and equipment purchases made during the suspension that would have required a CON.
 

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  Hospital Licensure Update  
  Updated regulations for the minimum standards for licensing hospitals were carried over this week by a subcommittee of the House Medical, Military, Public and Municipal Affairs (3M) Committee. Subcommittee members opted to "adjourn debate" on the proposed licensing standards to give stakeholders more time to reach consensus on the perinatal section of the regulations. Controversy over the perinatal regulations stem from a provision known as the "60-mile rule" that seeks to provide a regionalized system of care by keeping level three NICU's from being established within 60 miles of a perinatal center.
 
A representative for 21st Century Oncology, the largest radiation oncology provider in the U.S., also spoke in opposition to the hospital regulations because it removes the section that provides that a facility must be issued a Certificate of Need (CON) by DHEC. Representatives from DHEC reminded the committee that even while the Supreme Court debates the status of CON, there are still separate regulations that prescribe the CON process, and a CON statute that remains on the books. DHEC stated that removing the CON appendix from the hospital regulations would have no effect on the status of the CON program.
 
The SCHA has been working with DHEC to modernize hospital licensing standards that haven't been updated since 1992. The perinatal section of the licensing regulations was last updated in 2002. Given the lack of consensus on the perinatal section of the hospital licensing standards, DHEC has issued a drafting notice proposing further amendments to the hospital regulations, but only to the provisions relating to perinatal care. To be considered for the next drafting of the perinatal regulations, comments must be received by DHEC no later than 5pm on April 28, 2014.
 
The SCHA continues to support modernization of the hospital licensure regulations that have not been updated in over 20 years.
 

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  House Panel Advances Medical Records Bill  
  Legislation that would cap the amount health care providers can charge for medical records was advanced favorably by the House Judiciary Committee this week. The bill, H.4354, is sponsored by House Speaker Bobby Harrell (R-Charleston), and now heads to the House floor for consideration.
 
The bill updates state law to recognize the increased use of electronic medical records (EMR) by allowing patients to receive their medical record in paper or electronic form, capping the amounts that may be charged for paper records at $200, and $150 for records provided in electronic format. The bill also specifies that if there is no electronic version of the record, it may be provided as a photocopied reproduction for no more than $15. Insurers and governmental entities that provide medical benefits to patients would be exempt from fees for reproductions.
 
The legislation was advanced by a unanimous committee vote, and is likely to pass through the House handily given it has the support of the Speaker and other House leadership. Speaker Harrell filed the bill in response to a constituent who was charged an exorbitant amount for medical records last year.
 

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  Committee Actions  
  S.290 (Cleary), H.3779 (Crawford), H.4901 (G.M. Smith) - 3 bills that provide for expanded telemedicine use and the reimbursement of telemedicine services received an adjourned debate from the House Judiciary Committee.

S.1035 (Davis) - Legislation that would allow for the use of cannabis extract oils for medical research to treat severe epilepsy was amended and advanced favorably by a House Judiciary subcommittee.
 

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  Intros of Interest  
  H.5002 (Horne) - To provide for the licensing and accreditation of birth centers and the ability to transfer care to an acute care hospital with obstetrical and newborn services.  

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April 04, 2014