
ARLINGTON, Va.—Today, the North Carolina Supreme Court revived a lawsuit from a doctor challenging the state law that creates medical monopolies for certain services. The state’s certificate of need (CON) law bars Dr. Jay Singleton from using his own surgical facility, where he could provide more affordable eye surgery. The court’s decision returns the case back to the trial court. Dr. Singleton is represented by the Institute for Justice (IJ), a nonprofit public interest law firm.
“Today’s decision lets us return to the trial court and finally vindicate Dr. Singleton’s right to provide more affordable care for his patients,” said IJ Senior Attorney Josh Windham. “The CON law violates the North Carolina Constitution, which forbids the government from picking winners and losers.”
Dr. Singleton owns an ophthalmology practice in New Bern. Dr. Singleton’s office includes a state-of-the-art operating room, but because of North Carolina’s CON law, he is legally required to perform surgeries at the local hospital, CarolinaEast, which charges thousands of dollars more.
To use his own vision center, Dr. Singleton must obtain a certificate from a government board proving his services are “needed” in his community. There has not been a new CON available for over a decade. That’s because “need” is not based on what will save patients time or money, but on how many nearby providers already exist—providers who, under the law, get to weigh in on whether they want more competition.
“This is a win for all North Carolina patients,” said Dr. Singleton. “We have now been given the chance to present our case and let the facts speak for themselves.”
Patients’ access to safe, affordable health care is paramount. By impeding competition and imposing needless red tape, these laws increase costs and reduce access to lifesaving necessities like hospital beds, surgery facilities, and medical equipment. Government planners have no business telling entrepreneurs whether their services are “needed.”
“The North Carolina Supreme Court’s opinion underscores the importance of this case and its implications for the validity of the CON law statewide. Dr. Singleton’s fight will continue in a better position than ever to vindicate the right to earn an honest living,” said IJ Senior Attorney Renée Flaherty.
This case has been part of IJ’s longstanding effort to ensure that state courts provide meaningful protections for economic liberty, and that they reject laws that merely shield incumbent businesses from competition. IJ currently has similar cases challenging CON laws in Nebraska and protectionist restrictions on telehealth in South Carolina.