Health Planning and Resource Allocation Act of 1986

(Reported to Senate from the Committee on Labor and Human Resources with amendment, S. Rept. 99-224)

Health Planning and Resource Allocation Act of 1986 - Amends title IX (National Health Planning and Development) of the Public Health Service Act to replace the existing local planning agencies with a single State health services and resource allocation agency, designated by the State Governor.

Directs the Secretary of Health and Human Services to make grants (based on population) to States for health planning and resource allocation. Sets minimum grant amounts. Provides that such allotments may be used by the State for any of the following: (1) studies regarding the financing and delivery of health care in the State; (2) local plans for the allocation of health services and resources; (3) establishment of certificate of need programs; and (4) assessments of access to health services. Requires, absent a grant of waiver from the Secretary, that at least 30 percent of a State's allotment go to local planning agencies. Authorizes appropriations for FY 1986 through 1988.

Requires the Governor of a State to submit a grant application to the Secretary. Sets forth the requirements which must be met for the Secretary to approve such application. States that the Federal share of carrying out any application shall be 75 percent.

Authorizes grants to local planning agencies to: (1) provide information and opinions to the States; (2) assist in health planning and resource allocation; and (3) encourage the development of cost-effective alternatives to current health care financing and delivery systems. Provides that the State share in carrying out such applications shall be not more than 95 percent in FY 1986, 85 percent in FY 1987, and 75 percent in FY 1988 and each succeeding fiscal year.

Directs each State agency to: (1) develop and administer the State health services and resource allocation plan; (2) develop and administer the State administrative program; (3) administer the certificate of need program; and (4) prepare the annual report.

Requires the Governor of each State to appoint a health planning State Advisory Board. Requires two-thirds of each Board's membership to be major purchasers of health care services.

Requires each State agency to report annually to the Governor, who shall transmit such report to the Secretary.

Directs the Secretary, by grant or contract, to assist in the operation of two health planning centers, with priority given to centers in existence as of September 30, 1985. Sets forth assistance requirements.

Establishes certain criteria which must be met by any State which decides to establish a certificate of need program.

Requires a State agency to review a certificate of need application according to procedures and criteria developed by such agency in accordance with the Secretary of Health and Human Services' regulations.

Establishes a 15 member National Health Planning and Resource Control Council to: (1) review the annual reports required by this Act; and (2) advise the Secretary regarding health planning, congressional reporting requirements, and resource allocation.

Requires the Secretary to report to the Congress by March 1 of each year regarding health planning, resource allocation, and cost containment.