1. “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

2. 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

3. 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

4. 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

5. 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

6. 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!

7. 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

8. 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