DeKalb GA News

A Senate Study Committee in Georgia has recommended a comprehensive revision of healthcare laws, with a particular focus on the Certificate of Need (CON) regulations. The committee's recommendation is driven by concerns over the impact of these regulations on competition and healthcare accessibility. They have pointed out potential misuse by established healthcare entities, leading to the proposal of changes for the General Assembly aimed at enhancing the healthcare landscape in Georgia.

The Georgia Public Policy Foundation explains that CON laws were initially instituted to control escalating healthcare costs. Regulators were tasked with assessing healthcare needs during a time when government reimbursement was directly tied to spending, which encouraged hospitals to expand by adding beds and equipment. However, a decade later, Congress recognized the flaws in this system and repealed the federal CON law. Despite advancements that allowed safer outpatient procedures, innovation was limited to what existing providers offered.

According to a report by the Georgia Public Policy Foundation, if a complete repeal proves unattainable, the study committee has proposed modifications to Georgia's current CON laws. These suggested changes cover a broad range, including eliminating CON requirements for Obstetrics Services, Neonatal Intensive Care, and Birth Centers statewide. The proposals also advocate for phasing out hospital-based CON by January 1, 2025, exempting psychiatric services for Medicaid patients from CON reviews, removing cost expenditure triggers, and considering unified medical and surgery specialties. These changes aim to enhance healthcare accessibility and services significantly, especially in rural areas. Additionally, recommendations include easing restrictions on emergency departments and research centers.

The same report highlights that the committee stressed that these proposed recommendations aim to increase competition, improve healthcare delivery, and address disparities — particularly in rural communities. However, the committee maintained that fully repealing CON laws would be the most effective approach to counteract anti-competitive effects and perceived abuses perpetuated by these regulations. Their assessment suggests that Georgia's CON laws — originally designed to address outdated issues — now hinder progress in healthcare. Implementing the suggested reforms could significantly improve access to advanced healthcare services, particularly in underserved areas.