Certificate of Need (CON) laws were originally introduced to control health care costs by limiting competition among providers. However, decades of research suggest that these regulations do more harm than good.

Currently enforced in 35 states and Washington, D.C., CON laws require medical providers to obtain government approval before expanding facilities, purchasing equipment, or offering new services. In many cases, existing providers can oppose these applications, creating a system that stifles competition and innovation.

Studies show that states with CON laws have:

• Higher patient costs due to reduced competition.
• Fewer medical facilities, leading to limited access to care.
• Inferior patient outcomes, including higher mortality rates for common conditions.

Although CON laws were meant to lower health care spending, they have contributed to artificial shortages, increased bureaucracy, and restricted patient choices. The COVID-19 pandemic further exposed their inefficiencies, as many states had to waive CON regulations to allow faster response times.

Recognizing these flaws, 12 states have repealed their CON laws, with South Carolina being the latest in 2023. The evidence suggests that eliminating these outdated regulations can improve health care quality, accessibility, and affordability.

It’s time for policymakers to rethink CON laws and prioritize patient needs over regulatory red tape.