Governor Riley Rejects State Health Plan Amendment

You may have seen recent media coverage regarding disapproval by Governor Riley of a State Health Plan amendment that could have allowed a hospital in Hoover. Specifically, the amendment sought to create a provision in the State Health Plan that would allow a hospital in a community with more than 60,000 residents–provided the community was without a hospital–regardless of how many licensed beds were in the community’s home county.

The Governor’s disapproval of the amendment was based on one central point: if a new hospital were to be built that added beds to an over-bedded county, Medicaid costs could increase. With the state’s current Medicaid crisis, even the threat of increasing Medicaid costs prompted his action.

Does this mean Hoover can’t have a hospital?

No. The disapproval of the amendment by Governor Riley simply means that adding beds to an over-bedded county is not seen by the Governor and his staff as prudent, in terms of healthcare planning. Transferring beds from one section of the county remains a viable approach to locating a hospital in Hoover.

Then what did the Statewide Health Coordinating Council (SHCC) approve on January 22?

The SHCC approved the amendment mentioned above. It then went to the Governor, who had 15 days to act. Had he approved the amendment, it would have then gone to the Legislative Council for their approval. Each step of the process–SHCC, Governor, Legislative Council–is required for a State Health Plan amendment to be final. So what happened on January 22nd was just the first of three steps in the approval process.

What now?

There are a number of options available to secure a hospital in Hoover: a new amendment can be filed (one that stipulates a bed transfer); an adjustment to the State Health Plan can be filed (an adjustment would be specific to Hoover, making it non-applicable anywhere else in the state); or a CON application could be filed without the State Health Plan being amended. As you may be aware, any of these options is likely to have opposition which can lead to a protracted legal dispute.

What’s Baptist Health System’s next step?

We’ve recognized a critical-access-to-healthcare issue in Hoover and have seen broad community support by Hoover residents for a hospital. We will now evaluate all our options and act in a timely manner to address the prevailing access issue. It’s not a matter of ‘if’ we’ll make a next step. Rather, it’s a matter of ‘when’.