South Carolina is one of dozens of states that require health facilities to get state permission for many kinds of construction and expansion projects.
Nikki Haley, the state’s governor, has been working to repeal these rules, and the federal government recently weighed in with its support. In a letter and attached statement to Haley, the Department of Justice and the Federal Trade Commission wrote that laws requiring a certificate of need impede competition and make such projects more expensive.
"By interfering with the market forces that normally determine the supply of facilities and services, CON laws can suppress supply, misallocate resources, and shield incumbent health care providers from competition from new entrants," federal officials wrote.
State lawmakers are considering a provision that would end the certificate of need requirement in 2018. A 1974 federal law required states to enact the certificate of need process in an effort to control health care costs, but Congress repealed it 13 years later after studies showed it had little effect on cost control.
Related Stories
Healthcare Facilities | Mar 29, 2020
A ‘roadmap’ for building hospitals in rural and underfunded markets
Hoar Construction’s formula emphasizes preconstruction planning and input from healthcare workers.
Healthcare Facilities | Mar 27, 2020
Designing healthcare for surge capacity
We believe that part of the longer-term answer lies not just with traditional health providers, but in the potential of our cities and communities to adapt and change.
Modular Building | Mar 17, 2020
Danish hospital is constructed from 24 steel frame modules
Onsite construction was completed in two weeks.
Healthcare Facilities | Mar 9, 2020
Mobile wayfinding platform helps patients, visitors navigate convoluted health campuses
Gozio Health uses a robot to roam hospital campuses to capture data and create detailed maps of the building spaces and campus.
Healthcare Facilities | Feb 28, 2020
Valleywise Health Medical Center breaks ground in Phoenix
Cuningham Group Architecture and EYP designed the project.
Healthcare Facilities | Feb 27, 2020
Milieu: Creating restorative environments in behavioral health
It’s time to take a closer look at the collection of therapeutic settings known as milieu.
Healthcare Facilities | Feb 11, 2020
New York City’s largest freestanding cancer center opens
The building creates a model for 21st century cancer care.
Healthcare Facilities | Feb 3, 2020
China builds 645,000-sf coronavirus hospital in 10 days
The project began construction on Jan. 23.
Healthcare Facilities | Jan 30, 2020
The complex dance of healthcare transitioning
Hospital employees, though excited about technological advancements, are expected to navigate a new workplace and care for their patients at the same time, all while training on new equipment and navigating a new building.
Healthcare Facilities | Jan 15, 2020
Top 4 healthcare design trends that will shape medical planning in the 2020s
For patients and healthcare staff, these developments will be most evident in new tools, such as robotic surgical tables and intra-hospital delivery drones, that improve healthcare services and outcomes.
