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CON in Virginia

COLLAPSE

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ABSTRACT: 

Introduced in 1964 in New York, Certification-of-Need (CON) was created to contain health care costs by limitingoverinvestment in facilities and equipment. CON regulations require a medical provider to show a clear public need before providing a new service or facility (Stratmann, 2014).  Currently 36 states have some form of CON laws.  Virginia’s CON program is ranked 11th in being one of the most restrictive among the states. (Koopman, 2015).

With over 40 years of experience with CON laws and the health reform laws of 2010 (Affordable Care Act), it is time to see if changes need to be made to the CON laws in Virginia.   Implementing of the ACA, with its commitment to “leveraging” market forces to reduce health-care cost, will renew concerns for CON (Bagley, 2014).  The ACA creates federal external forces such a ACO’s that can cause state external forces such as CON’s to become obsolete.

For the stakeholders in Virginia, this situation presents an opportunity to reverse course and open the market for greater access, more competition, and ultimately more options for those seeking care and for those who want to provide care.

 

Bibliography:

Stratmann, Thomas; Russ, Jake; July 15th 2014; Do Certificate-of-Need Laws Increase Indigent Care? Mercatus Center; Retrieved June 30th, 2016; http://mercatus.org/publication/do-certificate-need-laws-increase-indigent-care

Koopman, Christopher; Stratmann, Thomas; February 24, 2015; Certification-of-Need Laws: Implication for Virginia; Retrieved June 30th, 2016; http://mercatus.org/publication/certificate-need-laws-implications-virginia

Bagley, Nicholas; February 26, 2014; What’s the point of Certificate of need laws?; The Incidental Economist; Retrieved June 30th 2016; http://theincidentaleconomist.com/wordpress/whats-the-point-of-certificate-of-need-laws/

 

 

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