Certificates of Need [CON] Questioned in Alabama

Good Health Policy or Competitive Anachronism?

By Staff Writers

Modern Healthcare just reported on a new study by an Alabama policy research group that questions whether the state needs to have a certificate of need process in place to limit the growth of healthcare facilities in the state. 

The API Study 

The study, by the Alabama Policy Institute [API], argued that the state’s CON regulations should be repealed. Its author, Roy Cordato, contended that if the state removes its CON restrictions, doctors, clinics and hospitals would be able to respond to competitive marketplace needs more quickly, which would actually improve the efficiency of healthcare delivery there. 

Methodology

To conduct the study, researchers looked at the experience of other states with CON programs.

Assessment

It found that 13 states have recently repealed CON regulations. Removing CON requirements has given consumers improved access to care in those states. Meanwhile, there’s almost no evidence that Alabama’s existing CON process has helped to reduce healthcare costs. 

Conclusion

And so, are CONs needed for competitive modernity, or are they relics of the misguided political past? 

Related info: www.HealthCareFinancials.com 

More info: The US Healthcare Certificate of Need Sourcebook

www.beardbooks.com/beardbooks/the_us_healthcare_certificate_of_need_sourcebook.html

HO-JFMS-CD-ROM

www.HealthcareFinancials.com