“FIRST DO NO HARM” Action Group 6: Approach to overcapacity Presentation by Larry Horwitz, President The Economic Alliance for Michigan the statewide business-labor coalition

Overview Michigan’s Certificate of Need (CON) program: Among the best in U.S. for cost, quality an access CTS: Fewer units than competing states, which have 60% higher costs

Overview (continued) MICHIGAN HOSPITALS: Significant excess capacity. Adding more hospitals would make the problem even worse. OPPOSE LEGISLATIVE BY-PASS OF CON: unneeded hospitals, CTs, & advanced cardiac programs. Conclusions

Michigan’s CON Program: Among the best in U.S. Lower Health Costs: MHA and auto studies Better Quality: When doctors and staff work together at high volume programs Good Access: Geographic distribution of hospitals and advanced services

CTs: Other Auto States – 61% higher costs Other states – more doctor-owned CTs Higher volume units often result in higher quality and less radiation exposure CON: Same high volume and staff expertise required for hospitals and doctor-owned units

Michigan Hospitals: Significant Excess Capacity Michigan 2009 Occupancy Rate: 58% Big drop in Michigan Hospitals’ patient days: 1977: 10.8 Million 1997 & 2009: 5.4 Million No additional hospitals needed!

Oppose legislative by-passes of CON Oppose an unneeded Clarkston Hospital: Six nearby hospitals together at 54% occupancy, even less than statewide 58% Oppose more advanced cardiac programs Oppose more duplicative CTs: Doctor and dentist offices, imaging centers, hospitals

Conclusions Long-term: Oppose current excess health capacity, as conference last year supported BUT FIRST DO NO HARM – Work now to: Oppose legislative CON by-passes to add duplicative capacity Support bi-partisan CON commission, already dealing with these issues