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Screenshot/SC Educational Television Some lawmakers in South Carolina’s state legislature have been fighting a David vs. Goliath battle this session, attempting to fully repeal the state’s corrupt Certificate of Need (CON) laws. And now, they just got an assist in the eleventh hour.
South Carolina Governor Henry McMaster came out in favor of the state fulling getting rid of its CON laws. This is significant as many in the healthcare industry and some lawmakers have been pushing for mere reform of the state’s laws instead of full repeal. It seems they recognize their crony scheme will not remain intact and are trying to push for reform over repeal so they can hold onto at least some of their special favors from the government.
McMaster isn’t having it.
In a letter to the House of Representatives, he wrote, “In the coming days the House of Representatives will consider S290, a bill that addresses our State’s Certificate of Need (CON) healthcare regulations. I ask that you consider a full repeal.”
He went on to say that he believes CON laws “have become antiquated and ineffective in today’s modern free marketplace” and that “CON stifles entrepreneurship, capital investment, and competition while limiting access and creating monopolies in South Carolina’s healthcare market.”
He’s got that right.
CON laws were put in place in the 1970s with the explicit purpose of limiting the supply of healthcare services. It was a form of government protectionism meant to shield industry insiders from competition so they could keep their prices artificially high.
In short, when a state has CON laws on the books, many healthcare providers have to go before a board and lobby for why they “need” to add another hospital bed, a new piece of equipment, or build a new hospital. Then their competitors get to come in and argue against them. […]
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