Unbiased Analysis of Today's Healthcare Issues
An interesting paper from Kevin Chiu in the Journal of Health Economics looks at the relationship between certificate of need laws and health outcomes: Certificate of need (CON) regulations requires that health care providers obtain state approval before offering a new service or expanding existing facilities. The purported goal of CON regulations is to reduce…
Many states have certificate of need (CON) laws which restrict providers supply for certain procedures. A paper presented by Vivan Ho at AcademyHealth claimed that there were 37 states with a CON law for at least one procedure. Following up earlier research which found that CON laws decreased quality, Dr. Ho found that dropping CON…
Certificate of Need (CON) were enacted in order to try to stem the wave of increasing health care costs. In order for hospitals or other providers to expand or build a new facility, CON requires these organizations to get prior government approval. The logic was that when providers expanded medical facilities, supplier-induced demand would increase…