Healthcare DIVE January 3, 2025
Michael Brady

The COVID-19 pandemic and population growth have led many states to scale back or eliminate Certificate of Need laws.

States are rolling back Certificate of Need, or CON, laws in the face of growing demand for healthcare and mounting evidence that they might not lower spending.

CON laws often require providers to get regulatory approval for large capital expenditures and projects, like some healthcare facilities. Facility mergers, acquisitions and ownership changes also require CON approval in some states.

The laws aim to control spending by limiting unnecessary facility expansion or duplicative services within an area. Without CON laws, supporters say providers could raise prices to compensate for underutilized hospital beds and services.

When the COVID-19 pandemic began, some healthcare...

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