Here are five reasons to note:
1. Some healthcare official believe CON laws do not accomplish the “triple aim” as it does not reduce healthcare costs, increase access or enhance quality.
2. CON laws were implemented 40 years ago when hospitals were reimbursed based on a cost-plus basis. Congress repealed the mandate and made it optional for states in 1987 because the data showed the CON mandate did not slow the growth in healthcare expenditures. However, several states opted to keep the CON laws.
3. Healthcare cost containment may be attributed to the implementation of managed care when insurance companies paid providers at a discounted rate in return for a guaranteed volume of patients.
4. A study by Duke University found CON regulations do not constrain overall spending per-capita. Researchers found it is more logical for some healthcare providers to acquire equipment or deliver care that is not regulated under a CON law.
5. While some experts claim CONs are necessary for the sustainability for rural hospitals, other experts state CON laws prevent many hospitals and other healthcare facilities from opening due to unnecessary regulations.
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