Navigation Links
Department of Justice, Federal Trade Commission Issue Joint Statement on Certificate-of-Need Laws in Illinois
Date:9/12/2008

Agencies Say CON Laws Undercut Consumer Choice, Stifle Innovation and Weaken Markets' Ability to Contain Health Care Costs

WASHINGTON, Sept. 12 /PRNewswire-USNewswire/ -- In a joint statement to the Illinois Task Force on Health Planning Reform, the Department of Justice and the Federal Trade Commission (FTC) stated the agencies' position regarding certificate-of-need (CON) laws, saying that the laws undercut consumer choice, stifle innovation and weaken markets' ability to contain health care costs. Today's statement reiterates the agencies' ongoing efforts to promote competition in health care.

State CON programs generally prevent firms from entering certain areas of the health care market unless they can demonstrate to state authorities that there is an unmet need for their services.

The task force is considering eliminating or amending Illinois' CON requirements. The agencies were asked by the task force to present their views at a meeting to be held in Chicago on Sept. 15, 2008. A representative from the Department will speak at the meeting.

In the joint statement, the agencies said that CON laws impede the efficient performance of health care markets by creating barriers to entry and expansion, to the detriment of health care competition and consumers.

"The Antitrust Division is committed to providing guidance on how to promote competition in the health care industry," said Thomas O. Barnett, Assistant Attorney General in charge of the Department's Antitrust Division. "Competition in this important industry benefits consumers by offering lower prices and better quality services."

The statement describes economic research on the effects of CON laws, as well as some of the risks that CON laws can entail. For example, in addition to limiting entry, CON laws create opportunities for existing competitors to exploit the CON process to thwart or delay new competition; they can facilitate anticompetitive agreements among providers; and the CON process itself may be susceptible to corruption.

FTC Chairman William Kovacic underscored the importance of health care competition, stating that, "The health care industry provides us all with fundamental services at significant and vulnerable times. Vigorous competition can promote greater access to cost-effective, high-quality health care."

The joint statement also evaluates several arguments in support of CON laws, noting that the original cost-control reasons for CON laws no longer apply and that CON laws are an ineffective means to fund indigent care. For these reasons, the agencies encourage members of the Illinois task force -- as well as officials in other states that continue to require certificates of need -- to consider whether such laws do more harm than good.

Today's statement is based on the agencies' extensive experience with CON laws. The agencies jointly conducted hearings on issues in health care competition, including CON laws, in 2003; those hearings, and related research, led to a 2004 report, Improving Health Care: A Dose of Competition, which observed that, "on balance, CON programs are not successful in containing health care costs, and that they pose serious anticompetitive risks that usually outweigh their purported economic benefits." Today's statement is based on that report and more recent economic studies. Recently, the agencies have provided similar statements to the General Assembly and the Senate of the state of Georgia; the Committee on Health, Education and Social Services of the Alaska House of Representatives; and the Florida Senate Committee on Health and Human Services Appropriations.

A copy of today's joint statement is available on the Department of Justice's Web site at http://www.usdoj.gov/atr. Hard copies of the statement are also available from the Justice Department's Antitrust Documents Group. The Antitrust Documents Group can be contacted on 202-514-2481, fax: 202-514-3763, or e-mail: http://www.atrdoc.grp@usdoj.gov.


'/>"/>
SOURCE U.S. Department of Justice
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Health and Agriculture Departments Warn Consumers About Raw Milk Sold in Montgomery County
2. PA Department of Health Reminds Businesses to Prepare to Implement Clean Indoor Air Act
3. Notice of Proposed Rulemaking on U.S. Department of Labors Risk Assessment Procedures Published in Federal Register
4. Philip Morris International Forced to Drop Another Concert Sponsorship; Philippines Health Department Applauded for Taking Action
5. Pennsylvania Department of Health Confirms Rabid Kitten Found in York County
6. Marex Group Forms Business Development Department and Promotes Three Strategic Employees
7. LegalView Brain Injury Site Reports Department of Veteran Affairs Request for Research on TBI and Soldiers
8. John Hancock Joins LifePlans, Inc. and the Department of Health and Human Services to Pilot Fall Prevention Program for Seniors
9. CoSign Digital Signature Healthcare Solution for South Carolina Department of Mental Health
10. Hennepin County, Minnesota Selects Lagan Human Services(TM) to Support Human Services and Public Health Department e-Government Initiative
11. Louisiana Department of Health and Hospitals Announces Intent to Award Cost Containment Services Contract to HMS
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/21/2017)... ... 2017 , ... The Patient Advocacy Community of The Beryl Institute presented Eve ... Ravich Patient Advocacy Award in recognition of her extraordinary contributions to the field ... at The Beryl Institute’s annual Patient Experience Conference on March 20 in ...
(Date:4/21/2017)... Sterling, VA (PRWEB) , ... April 21, 2017 ... ... hosting its first weeklong campaign, AWARE: A Week of Addiction and Recovery Education, ... emerging evidence in treating and preventing substance use disorders. , The mission ...
(Date:4/21/2017)... Malvern, Worcestershire, UK (PRWEB) , ... April 21, ... ... Queen’s Award for Enterprise in the category of International Trade, the UK’s most ... performance in international trade, which represents 95% of total revenues and has grown ...
(Date:4/21/2017)... (PRWEB) , ... April 21, 2017 , ... Westside ... experienced, personalized dental care since 1985. After thirty-two years, Dr. Latner has become one ... to help my numerous clients over the years with all their dental needs,” said ...
(Date:4/21/2017)... ... 21, 2017 , ... Federal mandate, fines, controversy, questions about ... Obamacare program that most Republicans love to hate and Texas Agriculture Commissioner Sid ... , Like Obamacare, the Miller program centers upon a federal mandate. ...
Breaking Medicine News(10 mins):
(Date:4/20/2017)... , April 20, 2017 Research ... Pharmacogenomics Market Size, Market Share, Application Analysis, Regional Outlook, Growth ... report to their offering. ... The global pharmacogenomics market was valued at US$ 7,167.6 ... Mn by 2024, expanding at a CAGR of 5.6% from ...
(Date:4/20/2017)... -- Research and Markets has announced the addition ... Analysis By Service (Manufacturing, Research), By Country, (Brazil, Mexico, Colombia, ... report to their offering. ... The Latin American pharmaceutical contract manufacturing services market is ... Low drug registration cost in Latin American countries and continuous ...
(Date:4/19/2017)... , April 19, 2017 The Mobile X-Ray product ... a healthy CAGR during the forecast period Mobile ... the global digital mobile X-Ray devices market, which is estimated ... 2017, expanding at a CAGR of 7% over the forecast ... opportunity of more than US$ 100 Mn in 2017 over ...
Breaking Medicine Technology: