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CON alternative goes into effect July 1

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The New Hampshire Certificate of Need (CON) Board, which has been responsible for approving new hospitals in the state, held its last meeting this month. However, on July 1 a new law will come into effect to regulate health care facility growth in New Hampshire. 

In theory, the CON Board controlled health care costs by ensuring that there was not excess hospital capacity. After all, if a hospital is unable to fill enough beds, it must cover its fixed costs by increasing the price of care.

Critics argued that by limiting new hospitals, the CON laws deprived consumers of the benefit of competition. If hospitals are competing for patients, they may improve the quality of care or lower patient costs. This argument led to a law to sunset the CON Board. 

As the CON Board’s last meeting approached, however, lawmakers worried that there should still be some regulations for new hospitals in New Hampshire. Lawmakers therefore sponsored SB 481, a 2016 bill that places some limits on new hospitals in New Hampshire. 

Supporters of SB 481 argue that it will ensure New Hampshire residents receive the quality of care they have come to expect from hospitals in the state. For example, the bill sets up licensing for high risk medical services such as open heart surgery and requires new hospitals to include emergency departments.

Opponents of SB 481 argue that it perpetuates the problems from the CON laws.

“This is not a time to be restricting new medical facilities,” said Rep. Dan McGuire. “There has not been a new hospital built in this state in over 30 years, during which our population has increased by almost 50%. … Competition is needed for consumers, including the state, to get the best prices and quality for our medical dollars.” 

How do you think New Hampshire should regulate new health care facilities? Share your opinion in the comments.

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