OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www. cga. ct. gov/ofa

HB-5048

AN ACT REQUIRING CERTIFICATE OF NEED APPROVAL FOR THE TERMINATION OF INPATIENT AND OUTPATIENT SERVICES BY A HOSPITAL.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 12 $

FY 13 $

Public Health, Dept.

GF - Potential Revenue Gain

2,500

3,000

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill results in a potential General Fund revenue gain of $2,500 in FY 12 and $3,000 in FY 13. It requires any hospital, seeking to terminate inpatient or outpatient services currently offered, to file a certificate of need (CON) application with the Office of Health Care Access (OHCA), a division of the Department of Public Health1. It is unknown how many terminations of such services will be sought in FY 12 and FY 13. Based on the number of applications received in FY 09 (two) and FY 10 (three), it is estimated that five applications may be received in FY 12 (resulting in a potential revenue gain of up to $2,500) and six may be received in FY 13 (resulting in a potential revenue gain of up to $3,000). CGS Sec. 19a-639a establishes a $500 CON application fee for termination of certain hospital services.

The Out Years

The fiscal impact identified above would continue into the future subject to the number of hospitals filing CON applications for the termination of inpatient or outpatient services.

1 This requirement existed in previous years. PA 10-179 eliminated it from the OCHA statutes.