The enactment of the National Health Planning and Resource Development Act of 1974 marks another important milestone in the evolution of health legislation in the United States. The Act provides authority for Federal support for local and State health planning bodies, and directs the Secretary of HEW to develop national guidelines for comprehensive health planning for the first time. In addition, local and State health planning agencies are required to develop quantitative short-term and long-range health plans, and to make public findings with respect to the appropriateness of existing health services. Also, States are required to enact Certificate of Need legislation as a condition of participation in the Federal comprehensive health planning program.
I believe this legislation will go far in helping to improve the distribution and appropriateness of health care facilities and services, and to help reduce health care costs by increasing the efficiency with which health care facilities and services are utilized, and by reducing unnecessary duplication of health care resources.
The Act also contains authority for Federal grants, loans, and loan guarantees to assist public hospitals with much needed renovation and modernization, assistance for the construction of facilities for outpatient care, and a limited amount of assistance for new facilities construction in rapidly growing areas. I'm looking forward to the vigorous and enthusiastic implementation of this Act by the Department of Health, Education and Welfare.
HARRISON A. WILLIAMS,
Chairman, Committee on Labor and Public Welfare,