Should a unit of government be able to say to a would-be business owner "Sorry, there are enough people selling the same service that you want to offer. You can't open shop?"
It happens all the time with regulations known as "Certificate of Need" (CON). The CON requirement is an easy way for one organization, already in business, to keep out competitors.
That's happening in Alaska, as the Juneau Empire (registration required) reports. Alaska Open Imaging was forced to close its facility in Fairbanks after the company that runs the Fairbanks Memorial Hospital complained. Dr. Robert Bridges, a radiologist affiliated with Alaska Open Imaging, has filed suit against the Alaska Department of Health and Social Services.