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                                                      PRINTER'S NO. 3795

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE RESOLUTION

No. 498 Session of 1998


        INTRODUCED BY WALKO, THOMAS, WOJNAROSKI, GEORGE, COLAFELLA,
           OLASZ, GIGLIOTTI, LAUGHLIN, BEBKO-JONES, BELFANTI, McCALL,
           SHANER, READSHAW, DeWEESE, CASORIO AND JAMES, AUGUST 10, 1998

        REFERRED TO COMMITTEE ON RULES, AUGUST 10, 1998

                                  A RESOLUTION

     1  Establishing a committee for the sole purpose of investigating
     2     and making recommendations to assess and approve the
     3     financial condition of newly created or expanded health care
     4     systems in this Commonwealth prior to approval.

     5     WHEREAS, Quality health care is essential to preserving the
     6  public well-being in this Commonwealth; and
     7     WHEREAS, Tens of thousands of residents of this Commonwealth
     8  are employed in the health care field; and
     9     WHEREAS, The protection of these tens of thousands of
    10  important family-sustaining jobs is absolutely essential to
    11  sustaining the economic and social vitality of this
    12  Commonwealth; and
    13     WHEREAS, Quality health care and family-sustaining jobs in
    14  this Commonwealth are imperiled by the financial instability of
    15  health care systems; and
    16     WHEREAS, The Commonwealth has witnessed the merging of
    17  numerous health care systems over the past few years; and
    18     WHEREAS, The widespread increase in managed care enrollment


     1  in Pennsylvania has applied additional financial pressure to the
     2  health care industry; and
     3     WHEREAS, The seemingly uncontrollable increase in
     4  uncompensated health care as exacerbated by recent cuts in
     5  medical assistance for the working poor and other Pennsylvanians
     6  has placed undue fiscal stress on health care systems throughout
     7  this Commonwealth; and
     8     WHEREAS, Assuring the financial soundness of existing health
     9  systems in Pennsylvania is a fundamental economic necessity; and
    10     WHEREAS, There currently is no mechanism to investigate the
    11  economic impact of such recent occurrences as the financial
    12  composition and solvency of newly created or enlarged health
    13  care systems, the impact of increased managed care enrollment
    14  and the growth of uncompensated health care; therefore be it
    15     RESOLVED, That a committee be selected by the Speaker of the
    16  House of Representatives for the purpose of studying and making
    17  recommendations to assess and approve the financial structure
    18  and condition of newly created or expanded health care systems
    19  in this Commonwealth; and be it further
    20     RESOLVED, That the committee study the impact of the
    21  increased managed care enrollment on the entire health care
    22  industry; and be it further
    23     RESOLVED, That the committee investigate the impact
    24  uncompensated health care has on the financial security of the
    25  health care industry; and be it further
    26     RESOLVED, That the committee may hold hearings, take
    27  testimony and make its investigations at such places as it deems
    28  necessary in this Commonwealth. It may issue subpoenas under the
    29  hand and seal of its chairman commanding any person to appear
    30  before the committee and to answer questions touching matters
    19980H0498R3795                  - 2 -

     1  properly being inquired into by the committee and to produce
     2  such books, papers, records and documents as the committee deems
     3  necessary. The subpoenas may be served upon any person and shall
     4  have the same effect as subpoenas issued out of the courts of
     5  this Commonwealth. Any person who willfully neglects or refuses
     6  to testify before the committee or to produce any books, papers,
     7  records or documents shall be subject to the penalties provided
     8  by the laws of this Commonwealth in such cases. Each member of
     9  the committee shall have power to administer oaths and
    10  affirmations to witnesses appearing before the committee; and be
    11  it further
    12     RESOLVED, That the committee make its final report to the
    13  House of Representatives no later than October 31, 1998.












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