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law required states to enact the certificate of need process in an effort to control health care costs, but Congress repealed it 13 years later after studies showed it had little effect on cost control.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
| May 14, 2014
Prefab payback: Mortenson quantifies cost and schedule savings from prefabrication techniques
Value-based cost-benefit analysis of prefab approaches on the firm's 360-bed Exempla Saint Joseph Heritage Project shows significant savings for the Building Team.
| May 13, 2014
19 industry groups team to promote resilient planning and building materials
The industry associations, with more than 700,000 members generating almost $1 trillion in GDP, have issued a joint statement on resilience, pushing design and building solutions for disaster mitigation.
| May 11, 2014
Final call for entries: 2014 Giants 300 survey
BD+C's 2014 Giants 300 survey forms are due Wednesday, May 21. Survey results will be published in our July 2014 issue. The annual Giants 300 Report ranks the top AEC firms in commercial construction, by revenue.
| May 7, 2014
Design competition: $900,000 on the line in Las Vegas revitalization challenge
Las Vegas Mayor Carolyn Goodman wants your economic development ideas for remaking four areas within the city, including the Cashman Center and the Las Vegas Medical District.
| May 3, 2014
Health system capital planning for the future: The benefits of master plan portfolio analysis and ambulatory market modeling
Money continues to be scarce, yet U.S. health systems need to invest and re-invest in their physical future. Healthcare facilities planning experts from CBRE Healthcare outline tools and strategies for identifying where to best allocate precious resources.
| May 1, 2014
Super BIM: 7 award-winning BIM/VDC-driven projects
Thom Mayne's Perot Museum of Nature and Science and Anaheim's new intermodal center are among the 2014 AIA TAP BIM Award winners.
| Apr 29, 2014
USGBC launches real-time green building data dashboard
The online data visualization resource highlights green building data for each state and Washington, D.C.
| Apr 16, 2014
Upgrading windows: repair, refurbish, or retrofit [AIA course]
Building Teams must focus on a number of key decisions in order to arrive at the optimal solution: repair the windows in place, remove and refurbish them, or opt for full replacement.
| Apr 9, 2014
How patient-centered medical homes can help healthcare providers and patients
Beyond reducing the number of uninsured Americans, the Affordable Care Act is driving new types of healthcare facilities, especially patient-centered medical homes.
| Apr 9, 2014
Steel decks: 11 tips for their proper use | BD+C
Building Teams have been using steel decks with proven success for 75 years. Building Design+Construction consulted with technical experts from the Steel Deck Institute and the deck manufacturing industry for their advice on how best to use steel decking.
