Andrew Strohman, Health
Care Data Analyst
Originally
intended to control health care costs at the state level, Certificate-of-Need (CON) laws regulate entry
into the market for specific health care services by determining whether given
geographic areas have an excess of demand relative to supply. If a radiologist,
for example, wanted to establish a private imaging clinic in a state with a CON
law covering those technologies, there would have to be evidence of a need for
his clinic to fill a gap in supply. Currently, 35 states have some form of CON programs,
with three other states having analogous legislation on the books. Those 38
states, however, vary significantly in the types of services they regulate. The
chart below shows the top health services regulated by CON laws across the
United States, with 34 states regulating nursing home beds and 30 controlling
long-term acute care facilities. Some question whether CON laws are better than
the free market at determining need, and evaluating the largest examples of CON
regulation may provide insight into their overall validity.
Data obtained from the Mercatus Center
https://www.americanactionforum.org/weekly-checkup/competition-and-pelosis-prescription-drug-plan/#ixzz60UJIZVwn
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