Commonwealth Policy Center

Many of Kentucky’s conservative lawmakers believe that our state’s certificate-of-need laws need major reform.  This is because Certificates-of-need limit local market competition in the healthcare industry. One lawmaker has called them “government mandated permission slips,” certifying that a particular service is needed in a community before a new healthcare provided is allowed to move in. The problem is that government supervision of any economic product is bound to raise cost. A competitive free market system guided by individual choice ensures that services are provided where they are needed at a fair price. One example is freestanding birthing centers, currently not allowed in Kentucky. A Senate Committee hearing to hear testimony on certificate-of-need reform is scheduled for June 20 in Frankfort.