HI HCR123

Requests the Legislative Reference Bureau to conduct a study of Hawaii's Certificate of Need program under chapter 323D, Hawaii Revised Statutes.

Directs study to examine the role of the Certificate of Need program, potential facility exemptions, modifications from other states, and whether reducing or eliminating Certificate of Need requirements could improve health care access on neighbor islands and for vulnerable populations.

Hawaii's Certificate of Need law was established in 1975 following the National Health Planning and Resources Development Act of 1974; the federal mandate was repealed in 1987, and twelve states have since repealed or allowed their Certificate of Need programs to expire.

Identifies criticisms of Hawaii's Certificate of Need program including that it creates barriers to entry, restricts competition, limits consumer choice, hampers innovation, is inconsistently administered, fails to control health care costs, and limits options for rural hospitals and neighbor island residents.

Requires the Legislative Reference Bureau to submit findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2023.