On May 16, 2023 South Carolina Governor Henry McMaster signed a measure to repeal the state’s Certificate of Need regulations for most healthcare facilities. The repeal of the Certificate of Need program should allow greater healthcare access and provide enhanced provider opportunities that may be looking to add additional offices, facilities, and services.

Certificate of Need (CON) is a regulatory mechanism used in some countries, particularly the United States, to control the construction or expansion of certain healthcare facilities and services. The purpose of a Certificate of Need is to ensure that healthcare resources are allocated efficiently, prevent unnecessary duplication of services, and promote the equitable distribution of healthcare facilities.

By requiring healthcare providers to demonstrate the need for a new facility or service before it is approved, CON programs aim to prevent unnecessary capital expenditures and promote cost-effective use of resources. Certificate of Need programs typically apply to significant healthcare projects such as the construction or expansion of hospitals, nursing homes, ambulatory surgery centers, and certain medical equipment acquisitions. The specific criteria for obtaining a CON vary from state to state in the United States, as CON programs are implemented at the state level.

The newly signed bill allows a three-year phase out of CON requirements for hospitals, except in counties that do not have one (where the mandate is repealed immediately). Observers state that eight South Carolina counties currently do not have a hospital. According to McMaster, South Carolinians will have greater access to affordable health care services with the repeal of the certificate of need laws, and everyone will benefit when the proven power of the free market is unleashed in our state.

In 2021, an analysis from the Mercatus Center at George Mason University concluded that eliminating certificate of need laws could increase the number of hospitals in South Carolina from 82 to 116, in addition to opening nine rural hospitals.  “This is going to bring real change to South Carolina,” says Americans for Prosperity: South Carolina State Director, Candace Carroll. “In the days since the House unanimously passed the repeal, health care providers have already started to explore opening new offices or expanding their services. Starting today, we can bring more affordable health care closer to all South Carolinians.”

WR’s Healthcare Team is enjoys assisting clients with expanding services to reach more patients in need; reach out to learn more about how we can assist with strategizing and planning for your future growth.

Link to Signed Repeal: South Carolina Legislature Online – Bill Search by Bill Number (scstatehouse.gov)