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The study, by the Alabama Policy Institute [API], argued that the state’s CON regulations should be repealed.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It found that 13 states have recently repealed CON regulations.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 

2 Responses

  1. CONs IN FLORIDA:

    Did you know that Florida’s Governor Charles Crist (R) wants his state to repeal its certificate-of-need rules for acute-care hospitals?

    The governor just included a proposal to eliminate CON rules in his fiscal 2009 budget, arguing that such a move would “increase competition and efficiency in the healthcare marketplace.”

    As Medical Executive Post readers know, the idea seems to be popular beyond the governor’s mansion, as the state’s Agency for Health Care Administration [AHCA], which oversees the CON process there, made a similar proposal late last year.

    And so, could this be a trend?

    -Hope

    Like

  2. CON
    Certificate-of-need (CON) regulation has been around for decades, and an overwhelming body of research suggests it raises costs, undermines quality of care and limits patient access to needed services.
    https://www.msn.com/en-us/news/politics/the-evidence-is-clear-states-exacerbated-pandemics-effect/ar-AAZkXSs?li=BBnb7Kz
    Hamilton

    Liked by 1 person

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