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law required states to enact the certificate of need process in an effort to control health care costs, but Congress repealed it 13 years later after studies showed it had little effect on cost control.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 | Mar 31, 2015
BIM and the changing procurement model for medical equipment in healthcare construction
BIM coordination has dramatically reduced change orders during the construction period. Unfortunately, it has had the opposite effect on medical technology integration, writes CBRE Healthcare's Julie Ford.
Healthcare Facilities | Mar 28, 2015
VA construction program ‘a disaster,’ says congressman
The VA construction program took more hits recently after the chairman of a congressional Committee on Veterans’ Affairs called an Aurora, Colo., hospital project “a disaster,” and a key VA official resigned abruptly.
Healthcare Facilities | Mar 23, 2015
Can advanced elevator technology take vertical hospitals to the next level?
VOA's Douglas King recalls the Odyssey project and ponders vertical transportation in high-rise healthcare design.
Healthcare Facilities | Mar 22, 2015
New Joplin, Mo., hospital built to tornado-resistant standards
The new hospital features a window and frame system that can protect patients from winds of up to 250 mph.
Healthcare Facilities | Mar 19, 2015
Grumman/Butkus Associates releases 2014 hospital energy and water benchmarking survey results
The survey results show that hospitals’ overall fossil fuel use has trended downward, but electricity use isn’t declining much.
Healthcare Facilities | Mar 18, 2015
Healthcare design partnership asks: What about the doctor?
HDR's Abbie Clary discusses the design of healthcare facilities and how they affect doctors.
Healthcare Facilities | Mar 16, 2015
Healthcare planning in a post-ACA world: 3 strategies for success
Healthcare providers are seeking direction on how to plan for a value-based world while still very much operating in a volume-based market. CBRE Healthcare's Curtis Skolnick offers helpful strategies.
Retail Centers | Mar 10, 2015
Retrofit projects give dying malls new purpose
Approximately one-third of the country’s 1,200 enclosed malls are dead or dying. The good news is that a sizable portion of that building stock is being repurposed.
Codes and Standards | Mar 5, 2015
Charlotte, N.C., considers rule for gender-neutral public bathrooms
A few other cities, including Philadelphia, Austin, Texas, and Washington D.C., already have gender-neutral bathroom regulations.
Healthcare Facilities | Mar 1, 2015
Are you ready for high-rise hospitals?
The vertical hospital environment may be the wave of the future, but it is not without its design challenges.
