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Scandal and corruption: A history of Certificate of Need laws  - Carolina Journal


effects of 
Certificate of Need laws: 
1970s: Health insurers have a dilemma, and Uncle Sam is about to get involved. At the time, insurers pay hospitals for their costs. Hospitals go on buying sprees, and everyone else foots the bill. 
1971: North Carolina decides hospitals have a spending problem, and they need a budget. Lawmakers require providers to get state permission before making any big purchases and Certificate of Need laws are born.   
1973: Not so fast. The N.C. Supreme Court axes the first version of CON laws for “establishing a monopoly.”  
1974: Congress picks up the idea, and it passes a Certificate of Need mandate. But Congress does nothing to fix the underlying incentive to waste money. Instead, Congress pushes states into adopting regulations known as CON laws.  ....

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