Monday, February 18, 2008

End the CON Laws of Alabama

Categories: Alabama, Certificates of Need (CON)

A new publication from the Alabama Policy Institute argues that restrictions on the construction of hospitals, nursing homes and other medical facilities must be repealed. Certificate of Need Laws: Why It's Time for a Repeal (PDF). While Certificate of Need (CON) laws were "repealed as a national policy during the Reagan administration – 20 year ago" – they are still in place in Alabama.

In his introduction to the report by Roy Cardato, Michael Morrisey observes four points:

CON laws don't save money;
CON laws inhibit choice and competition, which "is no trivial issue" for health outcome;
CON laws inhibit useful expansions of existing facilities; and
CON laws provide opportunities not only for "meme" rent-seeking, but for acts of criminal favoritism.