CON Laws Hurt Patients, Stifle Innovation

In 1974, Congress mandated states establish certificate of need (“CON”) laws to receive federal health care funds. These laws require health care providers to gain government approval before opening or expanding a facility, adding imaging devices and other medical technology, or offering new services. They were meant to keep down costs and ensure access to care. Congress later repealed the federal mandate in 1986 after CON laws proved ineffective; nevertheless, via path dependency and protectionism, CON programs persist in dozens of states across the country.