DOJ CON statement


  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 Outdated regulations shouldn't assist their monopolistic

  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, 

  --- On Sun, 9/14/08, Larry Stinson  wrote:

    From: Larry Stinson 
    Subject: FW: DOJ CON statement
    To: "Anna C) Kim" , "Bob Lynn"
    , "Bob Roses" ,
    "Brian Richardson" , "John Harris"
    , "Kristina Y) Perry" ,
    "Paul Richards" , "Rep John-Coghill.state"
    , "Representative "
    , "sarah palm" , "sean
    parnell" , "Senator "
    , ""
    , "Senator Fred "
    , "Senator-Gene_Therriault.state"
    , "Senator Hollis "
    , "Senator Joe "
    , "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

   From: larrystinson
   To: larrystinson .eom
   Subject: DO} CON statement
    Date: Sun, 14 Sep 2008 23 : 10:49 -0700


                                                                                                         Page 2 of 3

   b=:I/www.ftc,cLo- iopsi/2008109/ii[con.shtm

   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
   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.petition 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,


                                                                                                      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
mittee 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 b 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             
  send an e-mail to antitrust ), 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, readpetition Counts" at

        Mitchell J. Katz,
        Fl 'C Office of Pub /i c Affairs
         Daniel J. Gilman,
         Off" of Policy Planning

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