Trump spurs states to dump laws regulating new hospitals
Summary
President Trump’s administration is encouraging states to reduce or remove laws that control the building of new hospitals by linking these changes to federal funding. Several states, including Tennessee and South Carolina, are planning to ease or end these rules to qualify for money aimed at improving rural healthcare.Key Facts
- The Trump administration made part of a $50 billion program's funding depend on states changing their hospital construction approval laws.
- These laws, called certificate of need (CON) laws, require hospitals to prove the community needs new facilities or services before building.
- CON laws were created to prevent health monopolies and control costs but critics say they raise prices and block new facilities.
- More than 30 states and Washington, D.C., still have CON laws.
- Tennessee passed a bill to remove most CON rules over four years in response to this funding program.
- Other states like Alaska, Connecticut, Delaware, Iowa, and Mississippi are also considering changes.
- The Rural Health Transformation Program is part of President Trump’s One Big Beautiful Bill Act focused on modernizing rural healthcare.
- Both President Obama’s and President Trump’s administrations used federal money as a “carrot” to encourage states to change health policies.
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