Under
NHPRDA, entry restrictions at various levels of government became formalized under Certificate-of-Need (CON) laws.
645, 667 (1995) (declaring that "interpret[ing] ERISA's pre-emption provision as broadly as respondents suggest would have rendered the entire
NHPRDA utterly nugatory, since it would have left States without the authority to do just what Congres was expressly trying to induce them to do by enacting the
NHPRDA").
The National Health Planning and Resources Development Act of 1974 (
NHPRDA) provided more funds for health planning and for CON programs that met federal standards.(6) States that did not pass acceptable CON laws suffered severe financial penalties through the withholding of federal funds for a variety of health programs.