Certificate of Need laws were first introduced in the 1960s as part of a national movement to reduce healthcare costs by regulating the supply of healthcare services. The theory was that if states could control the number of healthcare providers and facilities, they could limit the amount of healthcare services being delivered, and therefore, reduce healthcare costs. However, over the years, it has become clear that these laws have not achieved their intended purpose. Instead, they've caused a range of problems, including limiting access to care, creating unnecessary bureaucratic hurdles for healthcare providers, and increasing healthcare costs.

Research shows that CON laws increase healthcare costs by limiting competition. A 2016 study published in the Journal of Health Economics found that states with CON laws had 30% higher healthcare costs than states without these laws. The authors of the study attributed the higher costs to reduced competition, which limits the ability of new providers to enter the market and offer lower-cost services.

CON laws also limit access to care, particularly in rural areas. Rural areas often have limited healthcare infrastructure, and CON laws make it more difficult for new providers to enter the market and expand existing services. A 2018 study published in the Journal of Health Economics found that states with CON laws had fewer hospital beds per capita and fewer primary care physicians per capita than states without these laws.

CON laws also create unnecessary bureaucratic hurdles for healthcare providers. Providers must navigate a complex regulatory system and often spend significant time and resources obtaining approval to open new facilities, purchase new equipment, or expand existing services. This process can take months or even years, delaying the delivery of care to patients who need it.

The evidence is clear that Certificate of Need laws are not achieving their intended purpose and are instead creating more problems than they solve. Eliminating these laws is essential to improving access to care, reducing healthcare costs, and promoting competition in the healthcare market.

One of the main problems with CON laws is that they limit access to care, particularly in rural areas. Rural areas often have limited healthcare infrastructure, and CON laws make it more difficult for new providers to enter the market and expand existing services. The result is that patients in rural areas have fewer healthcare options and often must travel long distances to receive care.

A 2018 study published in the Journal of Health Economics found that states with CON laws had fewer hospital beds per capita and fewer primary care physicians per capita than states without these laws. The study also found that rural areas were disproportionately affected by these laws, with fewer hospital beds and primary care physicians per capita in rural areas in states with CON laws compared to rural areas in states without these laws.

Another way that CON laws limit access to care is by making it more difficult for providers to offer new services. Healthcare providers must navigate a complex regulatory system and often spend significant time and resources obtaining approval to open new facilities, purchase new equipment, or expand existing services. This process can take months or even years, delaying the delivery of care to patients who need it.

CON laws also limit access to specialized care. In some cases, healthcare providers must obtain a CON to offer specialized services, such as advanced imaging or certain surgical procedures. These laws limit the ability of providers to offer these services, which can lead to delays in treatment and limit the availability of care for patients who need it.

One way that CON laws limit access to specialized care is by creating monopolies. In some cases, existing providers use CON laws to block new providers from entering the market and offering specialized services. This can limit competition and drive up prices, making it more difficult for patients to access care.

CON laws also limit access to care for low-income patients. Because CON laws limit the number of providers and services available, patients in low-income areas may have fewer options for care. This can lead to delays in treatment, and in some cases, patients may have to travel long distances to receive care.

CON laws also limit access to care for patients with rare or complex conditions. Because specialized services are often subject to CON requirements, patients with rare or complex conditions may have difficulty accessing the care they need. This can lead to delays in treatment, which can be life-threatening for some patients.

CON laws create several barriers in our healthcare system that can make it more difficult for patients to access care. These barriers include:

1. Bureaucracy: CON laws require healthcare providers to navigate a complex regulatory system to obtain permission to open new facilities, purchase new equipment, or expand existing services. This process can take months or even years, delaying the delivery of care to patients who need it.

2. Monopolies: Existing providers can use CON laws to block new providers from entering the market, creating monopolies that limit competition and drive up prices.

3. Limited options: CON laws limit the number of providers and services available, making it more difficult for patients to access the care they need.

4. Inequities: CON laws can create inequities in access to care, particularly for low-income patients and those with rare or complex conditions.

5. Inefficiencies: CON laws can create inefficiencies in the healthcare system by limiting the ability of providers to offer new services, reducing competition, and driving up costs.

Eliminating CON laws would help to remove these barriers, promoting competition in the healthcare market, increasing access to care, and reducing costs.

Conclusion

Certificate of Need laws were originally introduced to reduce healthcare costs by regulating the supply of healthcare services. However, over the years, it has become clear that these laws have not achieved their intended purpose. Instead, they have limited access to care, created unnecessary bureaucratic hurdles for healthcare providers, and increased healthcare costs.

Eliminating CON laws is essential to improving access to care, reducing healthcare costs, and promoting competition in the healthcare market. CON laws limit access to care, particularly in rural areas, and create barriers in our healthcare system that can make it more difficult for patients to access the care they need.

Research shows that CON laws increase healthcare costs by limiting competition and creating monopolies. They also limit access to specialized care and create inequities in access to care, particularly for low-income patients and those with rare or complex conditions.

Eliminating CON laws would help to remove these barriers, promoting competition in the healthcare market, increasing access to care, and reducing costs. It's time to eliminate these outdated regulations and create a more efficient, effective, and equitable healthcare system for all Americans.