Colon Health Ctrs. of Am., LLC v. Hazel — Jan. 2016 (Summary)

CERTIFICATE OF NEED

Colon Health Ctrs. of Am., LLC v. Hazel
No. 14-2283 (4th Cir. Jan. 21, 2016)

Virginia requires health care providers to obtain a certificate of need (“CON”) to establish or expand medical facilities and services in the state. Two out-of-state medical imaging providers brought an action against Virginia government officials claiming that this requirement discriminated against out-of-state providers in violation of the Fourteenth Amendment and the Commerce Clause. The district court held that the requirement was not discriminatory and that it did not place an undue burden on interstate commerce. The Fourth Circuit court agreed, noting that the providers would have needed to prove that the CON requirement, if enforced, would negatively impact interstate commerce to a greater degree than intrastate commerce. The court held that the CON law equally affects in state and out of state potential medical providers.