Senate Bill 462 will reform North Carolina's outdated Certificate of Need (CON) laws to allow for more competition in the healthcare industry. Increase competition will lower costs and improve access for consumers.
Senate Bill 462 will allow for more competition in the healthcare industry, which lowers costs and improves access for consumers. Specifically, the legislation would update the state's Certificate of Need (CON) laws. CON limits the number of medical facilities that can operate in any given area. For a new clinic to enter the market, it must petition and demonstrate a “need” for another facility of its type. This limits the kind of competition that can drive costs down and increase access to important care. Senate Bill 462 increases the dollar threshold for needing a CON from $2 million to $4 million and ensures construction on projects awarded a CON begin in a timely manner. Raising the dollar threshold will creates additional flexibility for new facilities to be built and existing facilities to be improved without government approval. Establishing a construction timeline will eliminate the ability of a CON winner from holding the approval, with no intention to act, to prevent competition from entering the market.