Concerns over the potential impact of the coronavirus on the U.S. populace and economy are growing. In the event of a widespread outbreak, the nation’s hospitals will become ground zero, absorbing the massive responsibility of treatment and containment.

Unfortunately, the availability of hospital beds in 38 states is limited by arcane laws called “certificate of need.” Rather than allowing a hospital to be built, adding beds to an existing hospital, or offering some types of new technologies, many states require that these additions be approved by a board of existing competitors with every incentive to restrict new competition from opening or expanding.