North Carolina senator brings state CON law back into the spotlight: 6 key points

Sen. Ralph Hise, R-McDowell, is working to repeal the state's certificate of need law by next year during a Senate Health committee meeting, according to Winston-Salem Journal.

Here are six key points:

1. Working to revoke the CON legislation, the senator amended House Bill 161 so the legislation features language revoking the CON legislation starting January 2017.

2. A Fairfax, Va.-based George Mason University study found North Carolina's CON legislation is the third most restrictive out of the 37 U.S. states with such laws. Sen. Hise said, "I have yet to find a state with a more restrictive CON law."

3. Stark opponents of repealing the CON law, including the N.C. Hospital Association, argue repealing the law would result in for-profit health groups only selecting the most profitable procedures. Thus, nonprofit hospitals would accrue the very sickest of patients who likely lack insurance.

4. Proponents argue revoking the CON law would promote competition, forcing physicians to reduce fees for high-risk procedures and enabling the opening of more acute-care hospitals, diagnostic centers and rehabilitation centers.

5. In March, Kernersville (N.C.) Outpatient Surgery submitted its CON application and is currently facing fierce opposition from Greensboro-based Cone Health, Surgical Center of Greensboro and Greensboro Specialty Surgical Center as well as Wake Forest Baptist Medical Center in Winston-Salem. The opponents argue the ASC would provide unnecessary duplication of services, which supporters of the CON law claim is a major fall-out of getting rid of the law.

6. While North Carolina's Senate did amend the House's 2016-2017 budget bill, which included repealing most CON laws by January 2019, it is not clear at this date whether the House leaders support CON's repeal.

More articles on surgery centers:
Kernersville Outpatient Surgery to face off against 3 competitors: 7 things to know
6 factors dictating investment and M&A activity in the ASC sector
AmSurg, Envision Healthcare consider merger to form $9B+ company — 8 things to know

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