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State court sides with WA hospitals against rule affecting affiliations

June 10, 2014

A Washington state judge Friday invalidated a state regulation requiring a certificate of need for “any change of control” in “any part” of a hospital, concluding that the Department of Health exceeded its authority under the state’s certificate-of-need law. The Washington State Hospital Association asked the court to invalidate the rule, which it called an “arbitrary and capricious” change in the state’s long-standing interpretation of the law. "We are relieved to see the judge's ruling, and are glad that hospitals can efficiently form the partnerships necessary to preserve and expand health care services in their communities," said WSHA President and CEO Scott Bond. "We all share the goal of transforming health care to be more effective and cost-efficient, but an expanded, expensive, unpredictable certificate-of-need process is not the way for us to find the solutions we need." For more information, visit www.wsha.org.