Q&A of the Day – Impact of Florida's Certificate of Need law on healthcare

Q&A of the Day – Impact of Florida’s Certificate of Need law on healthcare

Each day I’ll feature a listener question that’s been submitted by one of these methods. 

Email: brianmudd@iheartmedia.com

Twitter: @brianmuddradio

Facebook: Brian Mudd https://www.facebook.com/brian.mudd1

Today’s entry…

Hello Brian! What’s the name of the Bill you mentioned regarding the health facility changes? My mom owns an ALF, I’m wondering if those will be affected in any way.

Bottom Line: This is about Florida’s “Certificate of Need”, or CON, law. Florida’s operated with CON regs since 1973. They’ve been tweaked multiple times over the years. I say this to illustrate that the rules and regs are complicated. For ease of conversation – they're state imposed restrictions on ownership of hospitals, nursing homes and hospices. The net effect is that we have fewer hospitals, nursing homes and hospices in our state than we’d have without these limitations. Additionally – it's the lower populated areas of the state that are most negatively impacted by the ownership restrictions. Proposed legislation that stands a good chance of passing this year would mostly repeal these limitations starting in July of 2021. What would this mean to Floridians? 

  • The 15 states without CON laws have lower average healthcare costs than Florida, and the other 34 states with them

It’s not complicated. More hospitals and healthcare facilities... More competition and lower prices. According to a recent study by the Mercatus Center at George Mason University here’s the projected impact for Floridians if we eliminate the CON regs. 

  • $235 annually saved per Floridian 
  • 43% increase in medical facilities in rural communities
  • 104 additional medical facilities statewide

Greater access, lower prices and more convenience. Just kind of makes sense, right? Let’s hope sense wins out in the state session on this issue. I’ll keep you posted.

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