Question

Why did the Supreme Court find that CONs were illegal?
certificate of needs

Answer 1

A certificate of need (CON), in the United States, is a legal document required in many states and some federal jurisdictions before proposed acquisitions, expansions, or creations of facilities are allowed. CONs are issued by a federal or state regulatory agency with authority over an area to affirm that the plan is required to fulfill the needs of a community.

Supreme Court found CON as illegal because these laws have not served consumers well.They raised the cost of investment in new health care services and can shield new players from competition that would benefit consumers and lower costs. By reexamining the CON process state policymakers have an opportunity to invigorate competition in this important sector, to the benefit of patients, employers and other health care consumers.

States without CON laws provide high-quality care to patients at no greater average costs than other states.As more patients use high deductible health insurance plans and by using their own money, they should have more choices and better access to health care.

The main disadvantages and reason for making illegal were::

• By restricting new construction, CON programs may reduce price competition between facilities and keep prices high.
• By sensitizing health care organizations to market pressures.
• Not consistently administered.
• Health facility development should be left to the economics of each institution rather than being subject to political influence.
• lack of competition encourages construction and additional spending.
• Granted on the basis of political influence, institutional prestige or other factors apart from the interests of the community.
• Not for best interests of the community entail.

Expanded access, increased price competition and greater medical choice would serve the public interest by allowing new health care services to be provided in communities where they are needed most should be the main motto of health care services.