Health Care Would Improve If More States Eliminated Hospital ‘Permission Slips’ |
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Health Care Would Improve If More States Eliminated Hospital ‘Permission Slips’
It’s time for all states to follow in the steps of Tennessee and scale back their certificate of need programs.
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Imagine having to go before a government board to obtain a permission slip to open a new business. Your would-be competitors could lobby that board and argue that the government shouldn’t issue said permission slip, killing your business before it ever gets off the ground.
As crazy as it sounds, this dynamic occurs within health care regularly. Planning laws originally created in the 1960s and 1970s stifle competition, increasing health care costs while discouraging quality innovations. Thankfully, some states are taking action, giving customers more choice in ways that can help to thwart hospital monopolies.
State ‘Certificate’ Programs
In health care, the permission slip concept comes via certificates of need (CON). States issue these certificates to allow the creation of new health care facilities........