North Carolina’s Certificate-of-Need law circumvents the free market
for health care by putting the state in charge of deciding whether or
not a new or expanded medical service is “needed.” As John Hood noted
in a recent Durham Herald-Sun story about ambulance companies
who told county officials a new transport service isn’t “needed” in the
area, this approach doesn’t serve the public interest. Durham
officials, in fact, blocked the rival company from competing. “On the
face of it,” Hood said, “it seems odd to ask incumbent providers
whether they should have competition. Their answer will always be no.”
Later this month, JLF will release a policy report on why North
Carolina should repeal its Certificate-of-Need law. Authored by Roy
Cordato, the report will be the first in the Nathaniel Macon Series of
research papers.