Certificates of Need (CON)
Certificates of Need (CON) laws block the normal course of market economic development by making it illegal for potential new providers to enter a market without first getting government permission to do so. Unlike licensing, which sets provider qualifications that, once met, allows for entry, CON laws limit entry based on governmentally-determined need. This potentially blocks higher-quality providers from entering a market. CON laws limit quality and quantity and increase price in a market.