Do you support Certificate of need rules for hospitals?
I say no. We do not have laws limiting any other kind of business why should we have laws limiting how many hospitals can be built?
Basically from what I understand is that these laws limit how many hospitals can be built based on need.
[ame=http://en.wikipedia.org/wiki/Certificate_of_Need]Certificate of Need - Wikipedia, the free encyclopedia[/ame]
A Certificate of Need (CON), in the United States, is a legal document required in many state and some federal jurisdictions before proposed acquisitions, expansions, or creations of facilities are allowed. CONs are issued by a federal or state regulatory agency with authority over an area to affirm that the plan is required to fulfill the needs of a community. The concept of the Certificate of Need first arose in the field of health care and was passed first in New York in 1964 and then into federal law by the Richard Nixon administration in 1972. Certificates of need are are necessary for the construction of medical facility in 36 states and are issued by state health care agencies:
The certificate-of-need requirement was originally based on state law. New York passed the first certificate-of-need law in 1964, the Metcalf- McCloskey Act. From that time to the passage of Section 1122 of the Social Security Act in 1972, another 18 states passed certificate-of-need legislation. Section 1122 was enacted because many states resisted any form of regulation dealing with health facilities and services.
A number of factors spurred states to require certificates of need in the health care industry. Chief among these was the concern that the construction of excess hospital capacity would cause competitors in an oversaturated field to cover the costs of a diluted patient pool by over-charging, or by convincing patients to accept hospitalization unnecessarily.
Certificate of Need
The Effect of Certificate-of-Need Laws on Hospital Beds and Healthcare Expenditures: An Empirical Analysis
CON-Certificate of Need State Laws