CHARLESTON, W.Va. (WVDN) — The Cardinal Institute for West Virginia Policy today joined a coalition of policy leaders recognizing the failures of West Virginia’s Certificate of Need (CON) laws, which hinder healthcare opportunities and options with unnecessary government red tape.
The coalition, composed of policy leaders and advocacy organizations, is united in its commitment to creating a more competitive and patient-centered healthcare system in West Virginia.
The coalition letter is supported by the following organizations:
- The Cardinal Institute for West Virginia Policy
- Americans for Prosperity – West Virginia
- Institute for Justice
“For far too long, West Virginia’s healthcare system has been constrained by regulations that hinder competition and deny individuals the full breadth of care they deserve,” Cardinal Institute President & CEO Garrett Ballengee said. “The coalition represents a broad and influential cross-section of leaders united by a shared vision of transforming West Virginia’s healthcare system.”
What Are Certificate of Need Laws?
Certificate of Need laws require healthcare providers to obtain state approval before establishing new facilities, expanding services or acquiring major medical equipment. Originally intended to control costs, these laws have instead led to reduced competition, restricted access and worsened healthcare disparities.
Why Are Certificate of Need Laws Harmful?
CON laws:
- Reduce Access: States with CON laws have 30% fewer hospitals per 100,000 residents.
- Stifle Innovation: Providers are prevented from introducing new services, facilities and medical technologies.
- Increase Costs: Healthcare costs are 11% higher in states that enforce CON laws.
- Decrease Health Outcomes: States with CON laws experience a 5.5% higher mortality rate and fewer available hospital beds. Additionally, 52% of scholarly research indicates that CON laws negatively impact healthcare quality and access.
The Federal Trade Commission and the Department of Justice have also criticized CON laws. In a 2016 report, the agencies stated that “it is apparent that CON laws can prevent the efficient functioning of health care markets.”
“Without the barriers of CON, we can empower new and current healthcare entrepreneurs to meet the diverse needs of our communities, reduce costs and improve access to care for all West Virginians,” Ballengee said. “This effort is not just about reform—it’s about giving our healthcare system the freedom to evolve, ensuring that every resident has the opportunity to receive the care they need.”
Founded in 2014, the Cardinal Institute for West Virginia Policy, Inc. is a 501c(3) non-profit dedicated to researching, developing, and communicating effective free-market public policies for West Virginia.
