Quote:Sure, Florida has a Certificate of Need requirement where someone who wants to build a hospital has to have the State's approval to do so. This restricts supply and increases costs.


Certain outpatient services may not be performed without the oversight of a physician. This restricts supply.


Insurance companies cannot sell across state lines meaning they must replicate administrative functions in every state where they do business. This increases cost.


Dozens of these situations exist, all related to overregulation.

 

1) You assume the state government is the only barrier to entry. It may simply not make financial sense to build a hospital. There may be no demand for one. 

 

2) Not sure why you wouldn't want the oversight of a physician. They are your primary healthcare provider. 

 

3) There is a good reason they don't sell across state lines. Insurers would cherry pick where they provided business, potentially to the states with the healthiest populations. This would create a race to the bottom as insurers would get to choose both their regulator and their risk pool. 

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