An ophthalmologist's lawsuit against North Carolina's Health Department could spur market competition between Winston-Salem-based Novant Health and Charlotte-based Atrium Health, The Herald reported Nov. 4.
Here are eight things to know about the case and its potential effects on the state's healthcare market:
1. Jay Singleton, MD, an ophthalmologist and owner of Singleton Vision Center in New Bern, N.C., filed a lawsuit in April 2020 challenging the state's certificate-of-need law after being denied a CON to perform eye surgeries at his clinic. According to the report, state planners "projected no need for the service in the area."
2. "In truth, banning Dr. Singleton from offering surgeries to all patients at his clinic serves one purpose only: protecting established providers from competition," the suit claimed. "That is unconstitutional."
3. Richard Saver, a law professor at the University of North Carolina School of Law, told The Herald that the case could trigger "significant change" when it returns to trial court. He also noted that he expects the case to reach the North Carolina Supreme Court if appealed.
4. If the law is overturned, it could increase competition among healthcare providers, particularly between Novant and Atrium. The rival health systems were recently competing to offer a 3D body scanner in Mecklenburg County, N.C., as CON regulations also apply to medical equipment acquisitions.
5. Mr. Saver highlighted that, while an overturn of certificate of need laws could foster a "more robust market," it might also result in service duplication and a "medical arms race," where facilities rush to acquire advanced technology to attract patients without regard for costs.
6. In Charlotte, this could intensify competition for specialized services and complex surgeries, according to the report.
7. Mr. Saver pointed out that competition between Novant and Atrium would persist regardless, but the potential repeal of CON laws would escalate competition in some market segments.
8. North Carolina lawmakers have recently considered limiting CON laws, such as removing requirements for ambulatory surgery centers in urban areas, contingent on meeting Medicaid and self-pay patient thresholds. Certain psychiatric and chemical dependency facilities are now exempt from certificate of need laws, and Mr. Saver suggested that an overturn in North Carolina could have national implications.