Health Economics Program

Special Projects

Hospital Public Interest Review

The 2004 Minnesota Legislature passed a law establishing a public interest review process for hospitals seeking exceptions to the state’s hospital bed moratorium law (Minnesota Statutes Chapter 144.552). Under this process, a hospital seeking to increase its number of licensed beds or an organization seeking to obtain a hospital license must submit a plan to the Minnesota Department of Health (MDH). MDH is required to review the plan and issue a finding on whether the plan is in the public interest.

In conducting its review, the MDH is required to consider certain issues, including the following:

Whether the new hospital or hospital beds are needed to provide timely access to care or access to new or improved services;
The financial impact of the new hospital or hospital beds on existing acute-care hospitals that have emergency departments in the region;
How the new hospital or hospital beds will affect the ability of existing hospitals in the region to maintain existing staff;
The extent to which the new hospital or hospital beds will provide services to nonpaying or low-income patients relative to the level of services provided to these groups by existing hospitals in the region; and
The views of affected parties.

Under the statute, MDH must issue a finding within 90 days of receiving a complete proposal (or up to six months in extenuating circumstances).

Guidance for Public Interest Review Process, June 2015 (PDF)