Innovative Health Care Start-Ups Hit Roadblock with Decades-Old Legislation
Across the United States, health care startups eager to introduce innovative services and technologies find themselves hindered by a decades-old regulatory process known as the Certificate of Need (CON). This law, established in the 1970s, requires certain health care providers to obtain government approval before opening or expanding facilities, ostensibly to prevent the duplication of services and to control health care costs. In theory, the CON process is meant to maintain hospitals’ financial stability and encourage the allocation of resources to areas most in need. However, critics argue that it stifles competition, protects established health … Read more