Certificate-of-Need laws: How they affect - quality and access to health-care Posted: Mar 19th, 2020 - 10:56 am
I just learned of Certificate-of-Need laws, or CON (good acronym). The Mercatus Center at George Mason University has researched and written on these laws, and what the end results are. People lately are complaining that we need more this or don't have enough that. Reading through the information at Mercatus' site sheds light on how government artifiicially affects "need" and "avialiabiity."
First enacted in 1964, CON laws were evenutally federally mandated in the 1970s, and finally repealed in the 1980s. Even so, about 35 states and D.C. still have these laws:
As a general rule, CON regulators do not assess quality or competence. Those things are already regulated through other means such as licensing and certification boards. Instead, as the name suggests, the CON process aims to determine whether a community “needs” a service in question. In almost every other industry in the country, entrepreneurs themselves assess the viability of a service before they risk their own money. But in states with CON laws, health entrepreneurs can spend years and tens or even hundreds of thousands of dollars proving to regulators that their community “needs” the service they hope to offer. In the process, other providers often go before these boards and try to persuade them that, all things considered, they’d really rather not have any competition.
Linked below is the article from which this is quoted.
A brief breakdown of CON laws is here: https://www.mercatus.org/publications/corporate-welfare/certificate-need-laws
How the laws affect availability, etc.: https://www.mercatus.org/publications/corporate-welfare/certificate-need-laws-how-con-laws-affect-spending-access-and-quality
LINK/URL: Certificate-of-Need laws: How they affect
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