| Mississippi’s law requires many healthcare providers to apply for and receive a certificate of need from the Department of Health before opening, expanding, relocating, changing ownership, or acquiring major medical equipment. This a difficult and expensive process, during which existing competitors can protest that there is no “need” for a new healthcare facility.
Getting this certificate has nothing to do with proving that the new facility will be safe, sanitary, or high quality. Rather, applicants must convince the government that opening a new health care facility will not financially hurt competing health care businesses. This makes as much sense as a Dominoes being able to veto a new Papa John’s from opening!
Additionally, in 1981, Mississippi enacted a ban on the issuance of new certificates of need for home health agencies. This means that for almost four decades, the only way to enter the home health market has been to purchase a previously issued certificate of need from the owner of an existing home health agency who is seeking to sell the agency along with its certificate of need. If there are no previously issued certificates of need for sale in the desired service area, then healthcare entrepreneurs simply cannot provide home health services.
CON laws are a failed public policy that was originally intended to drive down health care costs. After experience showed that they actually had the opposite effect, some states abandoned them. But they remain on the books in 35 states, including Mississippi, because existing providers who benefit from them lobby furiously to keep them in place. Currently, Mississippi is one of only 16 states that require a CON to open a home health agency, and one of only two states that has a complete ban on new home health agencies.
The fact is that Mississippi should be encouraging entrepreneurs, not outlawing them. That’s why we look forward to vindicating Butch’s constitutional right to earn a living, and seeing him get back to growing his business.
We do this not to make money, but because it is the right thing to do, and our government has let Butch down. If you want to join us in this fight, and support Butch’s ability to work and help those in need, we would greatly appreciate potential donations. As a non-profit, we need every passionate defender of liberty to join us. If you like this case and want to see more like it, then please consider a donation to support our work!
In Liberty,
Aaron Rice
Director, Mississippi Justice Institute |
