Competition

Hospital in Non-CON State Tries to Con City into Blocking ASC Unless They Own It

October 18, 2021

For the few of you out there who don’t recognize the acronym “CON”, it stands for “certificate of need” which is itself a con.

The CON process is one in which bureaucrats get to exercise their power on behalf of someone who has something but doesn’t want anyone else to have one, too. OK, OK, I know there are contrary arguments, but they are fallacious.

Imagine if Ford and GM and Toyota had the ability to block Tesla from selling cars because it would take away some of their market share. So what. Well, so everything if a certificate of need were required.

Now, interestingly, Florida is not a certificate of need state in respect of the construction of ambulatory surgery centers.

So, in Mariana, the “City of Southern Charm”, about an hour outside of Tallahassee, officials of the town’s big healthcare player, Jackson Hospital have no CON bureaucrats to influence in order to block competition from Tallahassee Orthopedic Center (TOC) coming to town to open a new ASC.

Instead, they’re lobbying the city government to somehow block lower prices, lower infection rates, and better patient care unless . . . and you likely hear it coming . . . .TOC agrees to do a deal with Jackson Hospital for a joint venture ASC in which Jackson Hospital would be the majority owner.

Who knows how this is going to play out except that if the city attempts to use zoning laws to block competition and force a business deal favoring Jackson Hospital, I expect that TOC is going to file suit. They should win.



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