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Location: Nashville, Tennessee, United States

5/29/2003

What is so wrong with competition in healthcare?
A Nashville rehab hospital wants to build a new building. Ten other hospitals don't want the competition. So far, so good. But Tennessee has a "certificate of need" process that allows the competition a say in whether the rehab hospital can proceed with its construction process. And then the government agency said "No" to the rehab hospital. In other words, the government enabled a cartel to stave off increased competition.

A $50 million project to relocate Nashville Rehabilitation Hospital (NRH) hit a major roadblock Wednesday. NRH's application for a Certificate Of Need - a legal requirement for the new facility's development to proceed - was denied by the Tennessee Health Services and Development Agency at a hearing, where ten Nashville-area health care facilities voiced opposition to the move.
Why do we have a Tennessee Health Services and Development Agency? And why do they have the power to make this decision? Why can't a group of physicians, investors, whoever, spend $50 million to build a hospital if they want to? What is so wrong with competition in healthcare? Competition always leads to better service, better products and better prices, so it is the healthcare consumers of Tennessee who are the losers here.

Call me crazy. Call me a capitalism and free-markets-loving libertarian. I'm a distant relative of Patrick "Give me liberty or give me death" Henry (for real, we think). I will never, ever, understand why government has a say in such things.