CINCINNATI-Some providers already are dancing on the grave of Ohio's certificate-of-need law, which began a two-year phase-out process May 1. Jewish Health System recently announced plans to relocate services from 489-bed Jewish Hospital of Cincinnati to a suburban fa- cility, 75-bed Jewish Hospital Kenwood. The system will reduce its overall licensed beds by about 40% and cut the number of beds downtown by two-thirds. Oncology, cardiology, open-heart surgery and critical-care services probably will be moved. Other providers also have expressed an intent to move services from the city's overbedded Pill Hill area, occupied by Bethesda Oak, Children's, Christ, Deaconess, Good Samaritan, Jewish and University of Cincinnati hospitals. Cincinnati-based Mercy Health System plans to act on its 7-year-old plan to open an obstetrical unit at its hospital in fast-growing Fairfield, Ohio. Julie Hanser, Mercy's president and chief executive officer, said other providers blocked state approval for years, even though "we've got so many studies on the need (for it) we could cover a wall."