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April 21, 2021
In this Research & Commentary, Christina Herrin evaluates how Montana would benefit from Certificate of Need Law Reform
Montana is one of 35 states that still has Certificate of Need (CON) laws. These laws regulate health care facilities and require that any expansion of an existing medical facility or construction of new facilities is approved by a state review board. CON laws are outdated and increase health care costs, resulting in reduced competition and less innovation.
The bureaucratic process to prove there is a need in the market is erroneous at best and downright cronyism at worst. All too often it results in less competition by limiting startups from entering the industry. Montana CON requires at least a six-month review process and a fee of $500 or .03% of the project’s capital expenditures, whichever is greater.