A new report from the Americans for Prosperity Foundation has revealed that Alabama’s Certificate of Requirements (CON) law is having a detrimental effect on the state’s healthcare system.
The report suggests that these CON regulations are driving up healthcare costs for residents while simultaneously reducing the quality of care available.
Adam Thompson, the director of AFPF-AL, emphasized the need to repeal the Alabama Problem Need Act certificate, describing the regulations as costly impediments that limit competition and innovation in healthcare. He said, “These regulations decrease patient quality and curb investment in Alabama’s healthcare system.”
According to the report, CON laws are delaying millions of dollars that could otherwise improve healthcare outcomes, while also restricting providers’ ability to participate in the market.
“When many of our Alabama neighbors reconsider these burdensome regulations,” Thompson noted, “our state can’t afford to have them.” The push for reform or elimination of the CON law has occurred several times, including an initiative by state auditor Andrew Sorrell, who proposed a bill addressing this in 2022.
Sorrell referred to the system as a “scam,” asserting that it’s mainly benefiting competition rather than patient care. He mentioned, “It’s a barrier to free market competition for healthcare systems,” and highlighted the ongoing struggles, especially during the pandemic when hospital bed shortages became critical.
The report also provided evidence that the absence of CON regulations could lead to a significant increase in healthcare facilities in Alabama. Researchers estimate that without these requirements, Alabama could have over 178 hospitals, compared to the current 126. Additionally, patients might save over $200 a year on medical expenses, and post-surgical complications could be expected to decrease by 5.2% by removing these restrictions.
Furthermore, it was noted that Alabama’s healthcare landscape has been plagued by nearly 50 CON requirements, costing providers about $7.7 million in application fees over the last decade, contributing to the state’s ongoing challenges in healthcare quality and outcomes.
