Jessica linked to it in the Morning Reads and this was in this morning’s Peach Pundit Daily:
The Coming Battle Over Certificate Of Need. – Two Cartersville ob/gyns filed suit Tuesday to overturn the state’s health care regulatory process, saying it restricts competition and is unconstitutional. Drs. Hugo Ribot and Malcolm Barfield are challenging the Georgia Certificate of Need program, a complex set of regulations governing the creation and expansion of medical facilities. The Certificate of Need process has long been controversial because hospitals often use it to challenge competitors’ proposed projects. It has also pitted doctors against hospitals in battles over building surgery centers. The physicians’ lawsuit, filed in Fulton County Superior Court, is believed to be the first such litigation seeking to overturn the state’s entire Certificate of Need, or CON, program, said Glenn Delk, an Atlanta attorney for the physicians. This is one to watch.
According to the Department of Community Health website:
The Certificate of Need (CON) program is intended to achieve three goals: (1) to measure and define need, (2) to control costs, and (3) to guarantee access to healthcare services. Georgia began reviewing health care projects in 1975 under Section 1122 of the 1972 Social Security Act Amendments and Georgia’s CON program was established by the General Assembly in 1979 (O.C.G.A. Title 31, Chapter 6).
A report by the Mercatus Center takes a different view:
While CON programs were intended to limit the supply of health care services within a state, proponents claim that the limits were necessary to either control costs or increase the amount of charity care being provided. However, 40 years of evidence demonstrate that these programs do not achieve their intended outcomes, but rather decrease the supply and availability of health care services by limiting entry and competition. For policymakers in Georgia, this situation presents an opportunity to reverse course and open the market for greater entry, more competition, and ultimately more options for those seeking care.
Hopefully this lawsuit will encourage a discussion about Certificate of Need and whether or not changes to the system are needed. I would suggest changes are needed. Of course, if the Doctors win, change will come.