South Carolina's certificate of need law is in limbo, and hospitals in the state are taking caution about how to proceed with their construction projects, according to a Times and Democrat report.
Gov. Nikki Haley (R) vetoed $1.7 million for the CON program in the state's 2013-2014 budget, and legislators upheld that veto last week. Consequentially, South Carolina's Department of Health and Environmental Control suspended the program for the year.
However, state law still requires hospitals and medical facilities to acquire a CON before building, expanding, offering a new service or buying new medical equipment that costs more than $600,000. Thirty-two projects expected to cost more than $100 million were under review last month by the DHEC, according to the report.
A spokesperson for Gov. Haley said hospitals can proceed with construction, but House Speaker Bobby Harrell (R) is recommending hospitals take caution, as the state's law and $600,000 cap remains in place.
The scenario is similar to one developers might face if they were required to obtain building permits, but the office that distributes the permits was shut down, according to the report.
Some hospitals have expressed concern that their competitors will be the enforcers of the $600,000 cap. A hospital that proceeds with a project costing more than that may face a lawsuit from its competitor, halting construction, according to the report.
DHEC has petitioned the state's Supreme Court to clarify the future of the program, according to a Post and Courier report.
More Articles on Certificate of Need Programs:
South Carolina Governor Vetoes Funding for Certificate of Need Program
Carolinas HealthCare, Piedmont Head to Court Over CON
GOP Legislator Seeks to Repeal Maine's CON Program