Assume that the state legislature has enacted a CON statute that applies to the development of nursing homes and home health agencies within the state. At present, there is no nursing home in Treestump County, which is located in a rural area of that state. According to the applicable state plan and the applicable state regulations, there is a need for one—and only one—nursing home in Treestump County. Pursuant to the state CON law, ABC Corporation and XYZ Corporation each filed an application to develop a nursing home in Treestump County. At the end of the review period, the state CON agency denied the application of ABC. At the same time, the state CON agency approved the application of XYZ, and thereby gave XYZ a monopoly of nursing home services in Treestump County. Under these circumstances, which of the following statements, if any, is true?
[Solved]: Assume that the state legislature has enacted a CON…
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