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May 01. 2012 8:32PM

Not needed: New Hampshire's CON law

The state Senate is set to vote today on a House bill that would repeal the state's Certificate of Need law. The Senate wants to send the bill for further study. That is not necessary.

The Certificate of Need law forces medical care providers to prove that costly new services or equipment are necessary before they can be offered in the state. For instance, one hospital might want to offer CT Scans or open-heart surgery. But if they are available at another nearby hospital, the state CON board can deny the application, saying the new services are not needed because they are already available.

Supposedly, that keeps costs down. In reality, it allows existing providers to have regional monopolies on certain services, which keeps costs artificially high. If we applied that process to gas stations, just imagine how high gas prices would be. Sorry, Hess, but you can't open a gas station in Manchester because the city already has one.

Legislators don't need to study this issue. We already know that CON laws raise prices and restrict access to services. Repealing ours would help consumers.


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