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:10/13/2017)... ... October 13, 2017 , ... ... in the greater Dallas, Miami, and Raleigh regions, is organizing an extended charity ... a rare and deadly chromosome abnormality. , After struggling since birth with several ...
(Date:10/13/2017)... ... October 13, 2017 , ... The American Board of Family Medicine's ... President and Chief Executive Officer, succeeding Dr. James C. Puffer upon his retirement. Dr. ... 2018 until Dr. Puffer’s retirement at the end of 2018. Upon assuming the role ...
(Date:10/13/2017)... , ... October 13, 2017 , ... Lori R. Somekh, ... member of ElderCounsel, a national organization of elder law and special needs planning attorneys. ... and rules. It also provides a forum to network with elder law attorneys nationwide,” ...
(Date:10/13/2017)... ... 2017 , ... Ellevate Network, the leading network for professional women, brought together ... equality at their inaugural Summit in New York City in June. The event was ... of over 3 million. To watch the Mobilize Women video, click here . ...
(Date:10/13/2017)... ... October 13, 2017 , ... Coveros, ... Development, has been awarded a contract by the Center for Medicare and Medicaid ... to accelerate the enterprise use of Agile methodologies in a consistent and high ...
Breaking Medicine News(10 mins):
(Date:10/10/2017)... , Oct. 10, 2017   West Pharmaceutical Services, ... solutions for injectable drug administration, today shared the results ... Adapter for improving the intradermal administration of polio vaccines. ... Vaccination Summit in May 2017 by Dr. Ondrej ... Department, World Health Organization (WHO), and recently published in ...
(Date:10/4/2017)... OBP Medical , a leading ... today announced regulatory approval from Brazil,s ... Nacional de Vigilância Sanitária (ANVISA)) to market ... with integrated LED light source and smoke evacuation ... of a tissue pocket or cavity during surgical ...
(Date:10/2/2017)... 2, 2017 The Rebound mobile app is poised ... reverse the tide of prescription drug addiction. The app empowers ... intake and stepping down their dosage in a safe, controlled ... December 2017; the first 100,000 people to sign up will ... http://www.rebound-solution.com/ ...
Breaking Medicine Technology: