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law required states to enact the certificate of need process in an effort to control health care costs, but Congress repealed it 13 years later after studies showed it had little effect on cost control.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
Coronavirus | Apr 14, 2020
COVID-19 alert: Missouri’s first Alternate Care Facility ready for coronavirus patients
Missouri’s first Alternate Care Facility ready for coronavirus patients
Coronavirus | Apr 10, 2020
COVID-19: Converting existing hospitals, hotels, convention centers, and other alternate care sites for coronavirus patients
COVID-19: Converting existing unused or underused hospitals, hotels, convention centers, and other alternate care sites for coronavirus patients
Coronavirus | Apr 9, 2020
COVID-19 alert: Robins & Morton to convert Miami Beach Convention Center into a 450-bed field hospital
COVID-19 alert: Robins & Morton to convert Miami Beach Convention Center into a 450-bed field hospital
Coronavirus | Apr 4, 2020
COVID-19: Construction completed on first phase of Chicago's McCormick Place into Alternate Care Facility
Walsh Construction, one of the largest contractors in the city of Chicago and in the United States, is leading the temporary conversion of a portion of the McCormick Place Convention Center into an Alternate Care Facility (ACF) for novel coronavirus patients. Construction on the first 500 beds was completed on April 3.
Coronavirus | Apr 1, 2020
TLC’s Michael Sheerin offers guidance on ventilation in COVID-19 healthcare settings
Ventilation engineering guidance for COVID-19 patient rooms
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.