Hospital deregulation effort fails in Virginia

An effort by doctors, tea party groups, conservative lawmakers and others to loosen government oversight of new or expanded healthcare facilities in Virginia has failed.

The Virginia Senate effectively killed legislation Monday aimed at reforming the state's decades old certificate of public need law, which requires medical providers to prove to the State Board of Health that proposed new facilities, expansions or major equipment purchases are necessary in a geographic area.

Opponents of the current systems say it is uncompetitive and results in higher healthcare prices.

Hospitals argue they don't operate in a free-market system and need laws to remain economically viable.



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