Hospital Capital Stock Increase Limitation Act of 1979

Hospital Capital Stock Increase Limitation Act of 1979 - Amends title XV of the Public Health Service Act (National Health Planning and Development) to direct the Secretary of Health, Education, and Welfare to promulgate annually a national limit for certificates and reports of need to be issued in that year for "major increases in hospital capital stock." Sets the limit for any year at $3,000,000,000, to be adjusted according to increases in construction prices, changes in population growth, and previous estimates. Directs the Secretary to allocate such limit among the States according to appropriate factors.

Defines "major increase in hospital capital stock" to include: (1) the construction or development of a non-Federal hospital which (A) has an average duration of stay of less than 30 days, (B) is not primarily engaged in providing psychiatric services, and (C) is not wholly owned by a health maintenance organization (HMO); or (2) an improvement or acquisition by such a hospital which (A) exceeds $150,000 in value, (B) will increase the number of short-term non-Federal beds in the State, or (C) will substantially change institutional health services offered.

Applies the certificate-of-need program administered by the State health planning and development agency (State Agency) to: (1) new institutional health services (provided for in the current law); (2) increases in health care facility capital stock; and (3) changes in health care facility bed function proposed to be made in the State.

Defines "increase in health care facility capital stock" to mean: (1) the construction or development of a new health care facility; or (2) an improvement or acquisition by a facility, involving capital expenditures according to generally accepted accounting principles.

Prohibits a State Agency from granting a certificate-of-need which authorizes the establishment of any new short-term non-Federal hospital beds if the number of such beds in the health service area exceeds the limit for such area, unless two existing beds are to be eliminated for each new one to be established. Sets such limit at four beds per 1,000 individuals, or the limit set forth for such area in the State health plan.

Requires any certificate-of-need authorizing a major increase in hospital capital stock to specify the maximum dollar amount authorized. Prohibits the sum of such maximum amounts so authorized, or covered in reports pursuant to the capital expenditure limitation provision set forth in title XI of the Social Security Act, from exceeding the limit allocated to such State by the Secretary under this Act. Allows such sum to be increased by specified formulas or by exceptions granted by the Secretary to meet emergency situations or the needs of individuals residing in other States.

Revises the capital expenditure limitation provision set forth in title XI of the Social Security Act (General Provisions). Directs the Secretary to make an agreement with the chief executive of each State which: (1) does not have a certificate-of- need program meeting the requirements of the Public Health Service Act; and (2) does have a designated State Agency under such Act that is willing and able to carry out a report of need program. Requires such agreement to carry out a report of need program which meets the requirements of a certificate-of-need program, with the exception that findings with respect to proposed services shall be made to the Secretary. Authorizes the Secretary to determine the need for services in a State having neither a certificate-of-need nor a report of need program.

Prohibits the making of Federal payments under the Maternal and Child Health, Medicare, and Medicaid programs with respect to new institutional health services which have not been found to be needed by the Secretary or pursuant to the certificate-of-need or report of need programs. Directs the Secretary to exclude a specified amount in determining Federal payments under such programs for expenses related to an increase in health care facility capital stock or a change in health care facility bed function, unless such increase or change has been found to be needed by the Secretary or pursuant to the certificate-of-need or report of need programs.

Directs the Secretary to estimate, after consultation with the State Agencies and health systems agencies, the number and value of major increases in hospital capital stock contracted for in 1977 through 1979 (up to the date of enactment), and of proposed increases in such stock, in each State in the following categories: (1) increases needed to meet Federal, State, or local safety regulations, or to comply with State or voluntary licensure or accreditation standards; (2) increases not resulting in an increase in the number of short-term non-Federal hospital beds; and (3) other increases. Requires the Secretary to allocate to each State maximum dollar amounts for such increases, taking into account the relatively greater importance of (1) over (2), and (2) over (3). Directs the Secretary to: (1) request the State Agencies to recommend which increases should be approved; (2) approve those increases so recommended (or, if no recommendations are submitted, to determine whether to approve such increases); and (3) exclude a specified amount in determining Federal payments under the Maternal and Child Health, Medicare, and Medicaid programs for expenses related to a major increase in hospital capital stock which was: (A) contracted for, or actually begun, before the 91st day after enactment, or (B) was not approved by the Secretary.