Wednesday, July 17, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, January 17, 2014
State CON Laws Drive up Health Care Costs
By NCPA @ 1:53 PM :: 4214 Views :: Hawaii State Government, Health Care

State CON Laws Drive up Health Care Costs

NCPA January 17, 2014

State CON laws drive up costs, restrict health care access and should be abolished, says Jordan Bruneau, a research analyst for the Foundation for Economic Education.

  • Thirty-six states (including Hawaii) and Washington, D.C., require that health care providers seeking to offer or expand their services obtain what are known as Certificates of Need (CON).
  • These permits will not be issued unless a state health-planning agency decides that there is, in fact, a need for a particular health service.

A retired optometrist in North Carolina, Dr. William Padgett, has tried for more than 10 years to bring an elderly care facility to Beaufort County, North Carolina. Senior citizens in the area, he says, have found it difficult to find a suitable long-term care facility, and Dr. Padgett has received commitments from assisted living companies to open facilities in Beaufort. However, he has been unable to get a CON permit.

CON permits derive from a 1974 law -- the National Health Planning Resources and Development Act -- that was an attempt to keep health care costs down by preventing maldistribution of health care resources. That law was repealed 12 years later when it did nothing to reduce health care costs. While some states also repealed their laws, the majority of states kept them on the books.

  • The idea behind the CON permit idea -- that preventing economic activity from expanding beyond need will keep costs down and prevent excess supply -- has been discredited, as barriers to entry (like CON permits) actually increase prices.
  • In fact, health care costs in CON states are 11 percent higher than in non-CON states.

Why have states retained these laws? Often, state health planning boards are under the influence of health care establishments that want to keep out new entrants that would bring competition.

Source: Jordan Bruneau, "The Great Health Care CON," Foundation for Economic Education, January 15, 2014.

2009: Hawaii Senators again block CON repeal


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together


Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii