Georgia Senators Consider Whether State Should Still Require Permits To Expand Health Care Facilities

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At the first meeting, it became clear that many of the commissioners appointed by Governor Bert Jones wanted to repeal Georgia's essential law in whole or in part.

"Georgians would be better off if the Peach State joined the states without a CON (certificate of necessity) law," said Thomas Stratman, a professor at George Mason University in Virginia. Stratman, one of the test's invited witnesses, works with the Mercatus Center, a free-market think tank.

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But senators cannot have the last word. The House of Representatives has its own inquiry committee which will start its meeting later. It won't be clear what each House wants until legislation is enacted for the 2024 legislative session.

A Certificate of Necessity in Georgia since the 1970s requires a person who wants to build a new health care facility or provide a new service to show a desire to expand. Licensing is intended to prevent excessive spending that increases health care costs.

But existing hospitals and healthcare providers often resist new developments. Opponents of the certificate say the law has become ineffective because the government and insurers want to control costs by negotiating prices up front. Instead, certification would prevent much-needed competition and increase revenue for existing health centers.

"The more patients we have in the hospital, the higher our financial costs are in terms of making other services available," Conley said.

Association officials said they will present proposals to change Georgia's laws in the near future.

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Stratmann et al.'s research shows that licenses limit competition and reduce the quality of care and quality of care. But Jocelyn Hill, a Senate research analyst, said the study drew some clear conclusions about whether the certification requirement law affects cost and quality.

Opponents say that if research shows no clear benefit, it is grounds for repealing the law.

Sen. Ben Watson, R-Savannah, MD, said, "It will be difficult to prove antitrust and anticompetitive behavior unless we show the unequivocal consequences of continued regulation."

There was repeated talk Tuesday of rural Georgia where hospitals were closed and some residents were left without medical care. Repeal advocates say there are too many rural hospitals in the state without licenses, but it's unclear what will happen in Georgia if that ends the requirement.

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Much of the debate this year has focused on a Senate bill that would end certification requirements for hospitals in counties with populations of less than 50,000. The move was to allow an unknown party to build a new hospital at the home of Governor Burt Jones in Buttes County.

There, Marietta-based WellStar Health System operates the county's Sylvan Grove Hospital. The regional commissioner said the 25-bed hospital has been neglected.

WellStar said the new 100-bed hospital will affect the existing 160-bed WellStar Spalding Regional Hospital in Sylvan Grove and Griffin.

The Atlanta Journal-Constitution reports that Burt Jones' father, Bill Jones, may build a new hospital on the purchased land. Buttes County layout showing a hospital on a single plot of land. A location has not yet been determined, the governor's office said.

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