1:24 PM 16 Sep 2008 [ View original ]
Larry,
I agree that reforming the Certificate of Need is a step towards putting doctors and patients (the
customer) back in charge of the medical industry. Interstate corporations have proven their priority is
profit; and not the customer/patient. Outdated regulations shouldn't assist their monopolistic
strangeholds.
The CON was the trigger issue for me to run for State House this summer. Let me know what I can do to
advance healthcare reform (from a free market perspective.)...Brian R> CEO, (907) 230-3295
--- On Sun, 9/14/08, Larry Stinson wrote:
From: Larry Stinson
Subject: FW: DOJ CON statement
To: "Anna C (GOV) Kim" , "Bob Lynn"
, "Bob Roses" ,
"Brian Richardson" , "John Harris"
, "Kristina Y (GOV) Perry" ,
"Paul Richards" , "Rep John-Coghill@legis.state ..ak.us"
, "Representative Bob_Lynn@legis.state.ak.us"
, "sarah palm" , "sean
parnell" , "Senator Con_Bunde@legis.state.ak.us"
, "Senator_Donny_Olson@legis.state.ak.us"
, "Senator Fred Dyson@legis.state.ak.us"
_
, "Senator-Gene_Therriault@legis.state .ak.us"
, "Senator Hollis French@legis.state.ak.us"
, "Senator Joe Thomas@legis.state.ak.us"
, "Stacie Kraly"
Date: Sunday, September 14, 2008 , 11:28 PM
Department of Justice again advises repeal of state Certificate of Need due to abuses and
ineffectiveness.
From: larrystinson @hotmail.com
To: larrystinson @hotmail.eom
Subject: DO} CON statement
Date: Sun, 14 Sep 2008 23 : 10:49 -0700
8/31/2009
Page 2 of 3
b=:I/www.ftc,cLo- iopsi/2008109/ii[con.shtm
v
Federal Trade Commission,
Department of Justice Issue point
Statement on Certificate-of-Need
Laws in Illinois
Agencies Say CON . Laws Undercut Consumer
Choice, Stifle Innovation and
Weaken Markets' Ability to Contain Health Care
Costs
In a joint statement to the Illinois Task Force on Health Planning Reform, the Federal Trade Commission
and Department of Justice (DOJ) stated the agencies' position regarding certificate-of-need (CON) laws,
saying that the laws undercut consumer choice , stifle innovation and weaken markets' ability to contain
health care costs. Today's statement reiterates the agencies' ongoing efforts to promote competition in
health care.
State CON programs generally prevent firms from entering certain areas of the health care market unless
they can demonstrate to state authorities that there is an unmet need for their services. The task force is
considering eliminating or amending Illinois ' CON requirements . The agencies were asked by the task
force to present their views at a meeting to be held in Chicago on Sept. 15, 2008.
FTC Chairman William Kovacic underscored the importance of health care competition , stating that, "The
health care industry provides us all with fundamental services at significant and vulnerable times.
Vigorous competition can promote greater access to cost -effective, high-quality health care."
In the joint statement, the agencies said that CON laws impede the efficient performance of health care
markets by creating barriers to entry and expansion, to the detriment of health care competition and
consumers. The statement describes economic research on the effects of CON laws, as well as some of
the risks that CON laws can entail. For example, in addition to limiting entry, CON laws create
opportunities for existing competitors to exploit the CON process to thwart or delay new competition;
they can facilitate anticompetitive agreements among providers; and the CON process itself may be
susceptible to corruption.
"The Antitrust Division is committed to providing guidance on how to promote competition in the health
care industry," said Thomas 0. Barnett, Assistant Attorney General in charge of the Department's
Antitrust Division. "Competition in this important industry benefits consumers by offering lower prices
and better quality services."
The joint statement also evaluates several arguments in support of CON laws, noting that the original
cost-control reasons for CON laws no longer apply and that CON laws are an ineffective means to fund
indigent care. For these reasons, the agencies encourage members of the Illinois task force - as well as
officials in other states that continue to require certificates of need - to consider whether such laws do
more harm than good.
Today's statement is based on the agencies' extensive experience with CON laws. The agencies jointly
conducted hearings on issues in health care competition , including CON laws, in 2003 ; those hearings,
8/31/2009
Page 3 of 3
and related research, led to a 2004 report, Improving Health Care: A Dose of Competition, which
observed that, "on balance, CON programs are not successful in containing health care costs, and that
they pose serious anticompetitive risks that usually outweigh their purported economic benefits." Today's
statement is based on that report and more recent economic studies. Recently, the agencies have
provided similar statements to the General Assembly and the Senate of the state of Georgia; the
Committee on Health, Education and Social Services of the Alaska House of Representatives; and the
Florida Senate Committee on Health and Human Services Appropriations.
The Commission vote approving the joint statement was 4-0.
Copies of the joint testimony are available from the F Cs Web site at bftp://www.ftc.gov and the FTC's
Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The
FTC's Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive
business practices and, when appropriate, recommends that the Commission take law enforcement
action. To inform the Bureau about particular business practices, call 202-326-3300
send an e-mail to antitrust )ftc.gov, or write to the Office of Policy and Coordination, Room 394, Bureau
of Competition, Federal Trade Commission, 600 Pennsylvania Ave, N.W., Washington, DC 20580. To
learn more about the Bureau of Competition, read "Competition Counts" at
http://www.ftc.gov/competitioncounts.
MEDIA CONTACT:
Mitchell J. Katz,
Fl 'C Office of Pub /i c Affairs
202-326-2161
STAFF CONTACT:
Daniel J. Gilman,
Off" of Policy Planning
202-326-3136
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8/31/2009
