Ferlo Proposes Medical Curbs

May 8, 2012 – In The News
Valley News Dispatch

Pennsylvania State Senator Jim Ferlo is seeking co-sponsors for legislation that will restore the certificate of need review that requires health care companies to obtain state approval to build facilities or purchase major equipment.

Fox Rothschild Health Law Partner Bill Maruca says the program worked well years ago when health insurers didn’t have as much power. Today, there is no guarantee an insurer will sign a reimbursement contract with a facility.

“The certificate of need might not be the cure-all that people think it is,” Maruca said. “It was a cost-control tool that worked well at a time when health insurers did not restrict who they contracted with.”