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law required states to enact the certificate of need process in an effort to control health care costs, but Congress repealed it 13 years later after studies showed it had little effect on cost control.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 | May 27, 2015
Rochester, Minn., looks to escape Twin Cities’ shadow with $6.5 billion biotech development
The 20-year plan would also be a boon to Mayo Clinic, this city’s best-known address.
Healthcare Facilities | Apr 28, 2015
10 things about Ebola from Eagleson Institute's infectious disease colloquium
Research institutions know how to handle life-threatening, highly contagious diseases like Ebola in the lab, but how do we handle them in healthcare settings?
Green | Apr 22, 2015
AIA Committee on the Environment recognizes Top 10 Green Projects
Seattle's Bullitt Center and the University Center at The New School are among AIA's top 10 green buildings for 2015.
Building Team Awards | Apr 10, 2015
14 projects that push AEC teaming to the limits
From Lean construction to tri-party IPD to advanced BIM/VDC coordination, these 14 Building Teams demonstrate the power of collaboration in delivering award-winning buildings. These are the 2015 Building Team Award winners.
Building Team Awards | Apr 10, 2015
Prefab saves the day for Denver hospital
Mortenson Construction and its partners completed the 831,000-sf, $623 million Saint Joseph Hospital well before the January 1, 2015, deadline, thanks largely to their extensive use of offsite prefabrication.
Building Team Awards | Apr 10, 2015
Virtual collaboration helps complete a hospital in 24 months
PinnacleHealth needed a new hospital STAT! This team delivered it in two years, start to finish.
Building Team Awards | Apr 9, 2015
Big D’s billion-dollar baby: New Parkland Hospital Tops the Chart | BD+C
Dallas’s new $1.27 billion public hospital preserves an important civic anchor, Texas-style.
Building Team Awards | Apr 9, 2015
‘Prudent, not opulent’ sets the tone for this Catholic hospital
This Building Team stuck with a project for seven years to get a new hospital built for a faithful client.
Healthcare Facilities | Apr 8, 2015
Designing for behavioral health: Balancing privacy and safety
Gensler's Jamie Huffcut discusses mental health in the U.S. and how design can affect behavioral health.
Building Team Awards | Apr 5, 2015
‘Project first’ philosophy shows team’s commitment to a true IPD on the San Carlos Center
Skanska and NBBJ join forces with Sutter Health on a medical center project where all three parties share the risk.
