Related Federal Cases
- SC Nursing Home Faces Federal Scrutiny Over Veteran Care · Mississippi
- Ex-IRS Worker Hooper Pleads Guilty to $824K Health Care Fraud · North Carolina
- Settlement Reached for SC Nursing Home Rights Violations · Mississippi
- Ex-South Carolina Trooper Pleads Guilty to Violent Rights Violation · South Carolina
- Settlement Reached on Violations at SC Nursing Home · Mississippi
FTC, DOJ Slams S.C. Health Care Laws as Stifling Competition
The Federal Trade Commission and the Justice Department have taken aim at South Carolina’s certificate-of-need (CON) laws, labeling them as barriers to entry and expansion in the health care market.
In a joint statement, the agencies urged Governor Nikki R. Haley to reconsider the state’s CON program, which requires health care providers to obtain state approval before expanding, establishing new facilities or services, or making certain large capital expenditures.
"South Carolina lawmakers have the opportunity to help health care consumers in the state," said Assistant Attorney General Bill Baer of the Antitrust Division. "CON laws raise the cost of investment in new health care services and can shield incumbents from competition that would benefit consumers and lower costs. Repeal of South Carolina’s CON laws could invigorate competition in this important sector, to the benefit of patients, employers and other health care consumers."
According to the joint statement, the CON laws can create barriers to entry and expansion, limit consumer choice, deny consumers the benefit of an effective remedy for antitrust violations, facilitate anticompetitive agreements, and stifle innovation.
The agencies have historically urged states to consider repeal or reform of their CON laws, citing the potential harm to consumers and the efficient functioning of health care markets.
South Carolina’s House Bill 3250 aims to narrow the application of and ultimately repeal the state’s CON laws. If passed, the bill could lead to increased competition and lower costs for health care consumers in the state.
The joint statement is a significant blow to the CON program, which has been in place in South Carolina for decades. The program has been criticized for stifling innovation and limiting consumer choice in the health care market.
Key Facts
- State: South Carolina
- Category: Public Corruption
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
Public CorruptionPublic CorruptionPublic CorruptionPublic Corruption