According to the site, for the 'Certificate of need', the main arguments seems to be following: "A number of factors spurred states to require certificates of need in the health care industry. Chief among these was the concern that the construction of excess hospital capacity would cause competitors in an oversaturated field to cover the costs of a diluted patient pool by over-charging, or by convincing patients to accept hospitalization unnecessarily."

I couldn't understand this argument. Something seems to be wrong.