The State of North Carolina has decided to make WakeMed a winner in the health care services sweepstakes and Rex Healthcare a loser, reports the News & Observer. It’s all part of the state’s misguided program called Certificate of Need (CON), which gives the state control over who gets to expand or build medical facilities and/or services and completely ignores economics.
If Rex, or any other hospital or doctor, makes a business decision to offer more services, it is their decision and they will live with the consequences. Importantly, expansion of services and facilities is more competition, which drives down cost. The state should remove itself and let the market work.
JLF Vice President for Research Roy Cordato made the case for repeal of the CON law in this report, and he commented on CON activity in Wake County last year in this piece.
