The Federal Trade Commission and the antitrust division of the U.S. Department of Justice issued a joint statement saying the law in Virginia that requires state pre-approval for hospital expansions, opening surgery centers and purchasing some medical equipment inhibits competition, according to The Washington Post.
The FTC and DOJ's statement contends Virginia's certificate of public need laws "curb competition, limit consumer choice and stifle innovation," according to the report. This viewpoint is similar to that of many Republicans in the General Assembly, who believe the 42-year-old law should be amended significantly or repealed altogether.
The federal statement was released a day before a work group commissioned by Virginia Health Secretary William A. Hazel Jr. plans to review draft policy recommendations for improving the certificate of public need system.
Supporters of the law say the current process offset charity care costs, protect consumers from high prices and prevent redundancy in services, according to the report. The Virginia Hospital & Healthcare Association favors the certificate of public need laws. "Congress requires most hospitals to treat emergency room patients regardless of their ability to pay," VHHA spokesman Julian Walker said. The certificate of public need system helps "offset costs hospitals incur from caring for uninsured patients and shortfalls from reimbursements which fail to cover hospitals' costs for treating those in government health-care programs for the elderly and indigent."
Under the current law, facilities in Virginia that seek to expand or offer new services in acute care, diagnostic imaging, surgical and rehabilitation must first obtain a certificate of public need from the state health commissioner, which can take up to six or seven months and cost tens of thousands of dollars. The federal agencies that issued the latest statement believe these conditions could discourage new healthcare providers from expanding or launching in Virginia.