Virginia Regulatory Town Hall
Agency
Virginia Department of Health
 
Board
State Board of Health
 
Guidance Document Change: This policy outlines the procedure for means testing of owners who petition the Virginia Department of Health (VDH) for onsite sewage and private well evaluation and design services pursuant to § 32.1-248.4 of the Code of Virginia (the Code). This policy also establishes Hardship Guidelines whereby VDH may serve as a provider of last resort for onsite sewage and private well evaluation and design services pursuant to § 32.1-248.4 of the Code.
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6/20/19  5:46 pm
Commenter: James B Slusser

2019-01 Hardship Guidelines (D) Number of Private Sector Providers
 

D. Number of Private Sector Providers.

Any owner seeking evaluation and design services in a locality with an insufficient number of private sector service providers shall be eligible to receive VDH evaluation and design services. A locality will be deemed to have an insufficient number of private sector service providers when the number of bare applications received in the locality from May 1st of the previous year to April 30th of the current calendar year that resulted in the issuance of a permit exceeds the estimated number of additional designs that the private sector could provide in that locality.

 

Consider VDH market share allocation within Lenowisco Health District, it does not appear as if GMP 2019-01 will offer market development from 2019-2023 given section (D) of Hardship Guidelines.  

 
COUNTY % Market Share Held by VDH % Market Share Held by Private Sector OSE/PE
LEE 96.10 1.30
SCOTT 83.33 10.42
WISE 91.40 5.38

 

Recommendation:

Please request assistance from the appropriate regulatory authorities within Office of the Attorney General and FTC prior to defining a "market".  Allowing a monopolist to control the size of it's own turf is beyond the reach of public interest and public policy.   On its' face value, it appears this policy is further evidence of exclusionary conduct utilized by VDH (monopolist) to maintain market power.  In 2006, VDH consultant described the imbalance as;  

"The private sector is having difficulty making major inroads because of a pricing imbalance. At the same time the VDH is competing with the private sector at subsidized prices, it also regulates and provides oversight of the private sector functions."  -2006, EL Hamm, VDH RE-ENGINEERING INITIATIVE ONSITE SEWAGE SYSTEM PROGRAM

 

Nearly 13 years later, VDH still holds approximately 90 percent of the market share within the Lenowisco Health District by what means?  Low pricing and free labor which excludes competitors from the market.

 

CommentID: 72624