The American healthcare system has become a financial burden for families, employers, and our government while our population gets sicker.
- Almost 20% of our national GDP is spent on health care, a much higher amount than other developed nations.
- Insurance premiums rise each year as workers’ wages stagnate and out-of-pocket costs continue to grow.
Despite our high costs, we have worse outcomes compared to other developed countries, such as lower life expectancy and higher numbers of preventable deaths.
There are many reasons why healthcare costs are out of control, but one is that the supply of health care is often restricted by arbitrary government rules and regulations.
Certificate of Need (CON) laws are a regulatory process by which a state must give approval for the creation or expansion of certain healthcare facilities. Evidence shows that CON laws reduce the number of hospitals and surgical centers, worsen health outcomes, and raise prices by protecting existing providers from competition. States that do not have CON see expanded access, lower costs, and improved care compared to states that do.
Here’s the issue of Certificate of Need laws in 60 seconds: