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SB 1423

RELATING TO AMENDING SECTION 323D-54, HAWAII REVISED STATUTES, TO EXEMPT THE DEPARTMENT OF HEALTH FROM CERTIFICATE OF NEED REQUIREMENTS.

2026 Regular Session Introduced by Ron Kouchi

SB 1423 exempts Hawaii's Department of Health from Certificate of Need regulatory requirements for healthcare facility acquisitions and modifications, enabling faster project approval but reducing independent oversight.

Carried over to 2026 Regular Session.
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Bill Summary · SB 1423

Legislative bill overview

SB 1423 would exempt the Hawaii Department of Health from Certificate of Need (CON) requirements when acquiring, establishing, or modifying healthcare facilities. Certificate of Need laws require healthcare providers to demonstrate public need before making major capital expenditures or service changes. This exemption would allow the Department of Health to bypass this regulatory approval process.

Why is this important

Certificate of Need requirements are designed to control healthcare costs and prevent unnecessary duplication of services by requiring independent review of major healthcare investments. Exempting the state health department could accelerate public health infrastructure projects but may also circumvent cost-containment oversight mechanisms and reduce transparency in healthcare planning decisions that affect communities.

Potential points of contention

  • Oversight reduction: Removing CON requirements eliminates independent review of Department of Health facility projects, potentially reducing accountability for large public expenditures
  • Competitive fairness: Private healthcare providers must obtain CON approval while the state health department would not, creating unequal regulatory standards in the healthcare market
  • Cost control concerns: CON processes, while sometimes criticized, have historically been justified as preventing unnecessary healthcare spending; exempting large public investments may increase total healthcare system costs
  • Emergency powers precedent: The exemption may set a precedent for removing regulatory requirements from other state agencies without clear justification criteria

Compiled from official sources — confirm details with the bill’s official record.

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