The general complaints I read are about the lack of specialized equipment. E.g. https://reason.com/2017/01/25/virginia-certificate-of-need-h... about the lack of neonatal care units (in southwest Virginia). It seems hard to argue that there should only be one hospital per town that offers common services such as delivery, but the only other solution is buying more units since the lack of neonatal units leads to substandard care.

And of course competition leads to unnecessary duplication, inefficiency is a well-known criticism of capitalism. But this inefficiency is like the inefficiency that comes from using Python instead of C; it is slower and uses more resources, but it actually gets things done, unlike health care where the inefficiency seems to come primarily from government regulation and lack of transparency.