State Rep. John Reilly today introduced a plan to make health care more accessible across Michigan.
His legislation is part of a 28-bill package to repeal Michigan’s Certificate of Need (CON) requirement on hospitals, which requires hospitals to get permission from the government in order to expand.
CON requirements exist in addition to the standard licensing and training requirements for medical professionals and are designed to limit the supply of health care. Proponents for CON requirements maintain that by restricting market entry and expansion, states will reduce overinvestment in facilities and equipment.
Reilly disagrees and said CON requirements restrict freedom and choice in health care and drive up costs.
“All this really does is limit competition. It makes no more sense than the state limiting the number of gas stations in a given area,” Reilly said. “When people have freedom and choice, costs go down and quality goes up. The Certificate of Need scheme ultimately benefits the hospital industry at the expense of the sick.”
President Trump urged states to repeal their CON regulations in 2018. While most states have CON laws, several states, including New Hampshire, California, Texas and others, do not. Reilly’s legislation, House Bills 5510-5537 would repeal Michigan’s CON law in its entirety.