“That law has kind of kept organizations from outside Iowa coming in and building hospitals,” he said. “You go up to South Dakota, where there is no Certificate of Need law ... and you do see outside organizations come in and build physician- and investor-owned hospitals.
“[Certificate of Need] does tend to be kind of restrictive when it comes to building new facilities, which may be another reason why we don’t have as much for-profit activity here. That certificate of need is kind of a barrier, so to speak, to new facilities being built.”
Meyer doesn’t lean one way or another on the issue, noting that a hospital’s decision to remain not-for-profit or to sell is theirs alone.
“Each community decides how they want to proceed with the governance and ownership of their facility,” he said. “I don’t think you can look at Ottumwa and see anything different from looking at hospitals in Marshalltown or Ames.”
— To follow reporter Chelsea Davis on Twitter, head to twitter.com/chelsealeedavis.