Certificate-of-need laws, which regulate the development of healthcare facilities, have been the subject of controversy in some states where healthcare leaders and legislators view them as stifling competition in the healthcare sector.
In September, law firm Parker Poe published a blog post outlining states that have seen recent changes to their CON laws or could see them in 2025:
Here are four takeaways from the post:
1. North Carolina will lift CON requirements for ASCs in counties with less than 125,000 people, effective Nov. 1, 2025. Exempt ASCs will still need to satisfy certain charity care and reporting requirements annually.
The state's Supreme Court also recently sent a physician's CON lawsuit back to trial with instructions for a broader trial to determine the constitutionality of the regulatory laws. The lawsuit could result in overturning North Carolina's CON laws, which could spur competition among large healthcare systems in the state.
2. South Carolina's CON laws were repealed for ASCs, facilities are still subject to licensure requirements, such as charity care and annual reporting.
3. On Dec 1, 2027, Tennessee will lift CON requirements for ASCs. The Tennessee Health Facilities Commission is also creating a six-year plan to study the impact of CON reform, which will shape future regulation in the state.
4. Georgia exempts certain single-specialty ASCs from its CON laws if those ASCs are owned by a single physician or practice and generate below a certain amount in capital expenditures and operating room thresholds. Non-owner physicians can also perform procedures at the ACS in the same specialty.
Some ASCs developed by joint ventures with hospitals are also exempt from Georgia CON requirements. The state's Department of Community Health was set to release new recommendations in December, which could usher in a new wave of regulations in early 2025.