US: DOJ, FTC encourage South Carolina to repeal CON laws

The Department of Justice’s Antitrust Division and the Federal Trade Commission have recommendedSouth Carolina repeal its certificate of need laws because they can prevent the efficient functioning of healthcare markets and thereby harm consumers.

The DOJ and FTC gave their recommendation in response to a request by South Carolina Gov. Nikki R. Haley for views on a bill, which would ultimately repeal the state’s CON laws.

“South Carolina lawmakers have the opportunity to help healthcare consumers in the state,” said Assistant Attorney General Bill Baer of the DOJ’s Antitrust Division. “CON laws raise the cost of investment in new healthcare services and can shield incumbents from competition that would benefit consumers and lower costs. Repeal of South Carolina’s CON laws could invigorate competition in this important sector, to the benefit of patients, employers and other healthcare consumers.”

Although CON laws vary by state, they typically require certain healthcare providers to obtain approval from the state before expanding, establishing new facilities or services or making certain large capital expenditures, according to the DOJ.