I have never figured out why they have these laws in the first place.
If a corporation or a organization wants to build a hospital somewhere, why stop them?...........
My memory may be somewhat clouded but I remember the debate about hospital construction in the late 1960s and 1970s.
At first there was concern that we did not have enought hospitals to support a growing population, so there was federal financial incentives to construct more hospitals.
Then federal bureacrats and others noticed that there was an over supply of hospitals and from that came requirements for a “certificate of need” to build one.
I am not sure about the hospitals but usually existing businesses have a tremendous amount of influence about the “need” for new competition.