A joint statement from the Antitrust Division and the Federal Trade Commission has condemned Alaska’s certificate-of-need (CON) laws, calling them anti-competitive and potentially harmful to consumers.
The CON laws, which require healthcare providers to obtain state approval before expanding, establishing new facilities or services, or making certain large capital expenditures, can create barriers to entry and expansion, limit consumer choice, and stifle innovation, according to the joint statement.
The joint statement was issued in response to a request by Senator David Wilson for views on Alaska Senate Bill 62, which would repeal Alaska’s CON laws. The bill has yet to be passed.
“Alaska lawmakers have the opportunity to bring lower costs and greater options to health care consumers,” said Acting Assistant Attorney General Andrew Finch of the Antitrust Division. “CON laws can increase the costs of investing in new health care services and can shield incumbents from competition. Repeal of Alaska’s CON laws could invigorate competition in this critical sector, to the benefit of patients, employers, and other health care consumers.”
“CON laws raise considerable competitive concerns and generally do not achieve their alleged benefits for health care consumers,” said Acting Chairman Maureen K. Ohlhausen of the Federal Trade Commission. “CON laws can restrict entry and expansion, limit consumer choice, and stifle innovation. Additionally, the CON process can be exploited by incumbent firms to thwart or delay entry by new competitors, as well as potentially obstruct efforts to restore competition lost to an anticompetitive merger, harming free markets and consumers.”
The joint statement notes that the Antitrust Division and the Federal Trade Commission have historically urged states to consider repeal or reform of their CON laws because they can prevent the efficient functioning of health care markets and harm consumers.
The CON laws have been a point of contention in Alaska for some time, with advocates arguing that they are necessary to ensure that healthcare services are provided in a safe and efficient manner. Critics, however, argue that the laws stifle innovation and limit consumer choice.
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Key Facts
- State: Alaska
- Category: Public Corruption
- Source: DOJ Press Release â†â€â€
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