A North Carolina General Assembly proposal (Senate Bill 462) would help increase healthcare competition which lowers costs and increase access.
The Coalition SUPPORTS to this legislation.
Senate Bill 462 would update our state’s outdated Certificate of Need (CON) laws.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.
Specifically, Senate Bill 462:
- Increases the dollar threshold for needing a CON from $2 million to $4 million.
- 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. It is important that the threshold matches the rising cost of medical technology and construction.
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.
Actions related to this bill will be factored into a member’s Affordable Healthcare Grade at the close of the legislative session.