Additionally, the CON law
is narrowly focused on the interests of New Hampshire consumers--it does not encompass or consider the entire Northeast region, never mind the national and international market.
A legacy of the early 20th century, CON laws
restrict economic opportunity and raise costs for products and services that consumers need.
Cline explains that an excess supply of labs occurred as a direct result of a change in the CON law
in 1990 that permitted hospitals without open heart surgery capabilities to operate labs.
In practice, a CON law
constrains the growth of beds by employing a need-based evaluation of all applications for any new bed construction.
The exception was Montana, which was assigned a value of 0, since its CON law
applies only to nursing homes.
A series of studies in the 1980s and 1990s showed that the presence of CON laws
reduced the growth in the number of nursing home beds (Swan and Harrington 1990; Zinn 1994; Harrington et al.
Judicial tolerance of CON laws
is a result of judges embracing the ''rational basis'' excuse for retreating from judging.
Some State regulations such as CON laws
are likely to influence the growth in ASCs (Casalino et al.
Under the new CON laws
, hospitals no longer need approval to add acute-care beds to existing hospitals, but the CON process still applies to new hospitals and appeals can delay construction for years.
This merger offers many synergies including the consolidation of overhead, coordination of mobile routes, entry for MedCath into two new regulated states with CON laws
and significant new relationships with cardiology groups that offer acquisition and future project possibilities.
However, this past study found no evidence of a surge in expenditures or bed supply after CON laws
were lifted, whereas we found a significant association between lifting CON and the number of hospitals offering CABG and PCI.
Take Dranove's state of Illinois: He points out that Illinois has one of the toughest CON laws
, "having recently approved the first greenfield hospital construction in over twenty years.