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State certificate-of-need programs: The current status

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  • Simpson, J.B.

Abstract

Whether or not federal funding continues, it appears that a substantial number of states will retain certificate-of-need programs since CON regulation continues to satisfy a wide range of state policy roles. However, it also appears that several states may abandon the program in the absence of federal requirements to retain it, in favor of efforts to promote more competitive health service markets. This might well be a fortuitous development. Like any regulatory program that intervenes in the market to accomplish some social good, the need for CON programs ought to be continuously evaluated, and the scope of the program tailored to meet specific, concrete, and current purposes. This is difficult to do when all states adopt a nationally mandated program. The repeal of the program in some jurisdictions would offer a natural experiment to measure the impact of the presence or absence of certificate-of-need on the direction and scope of health facility expenditures.

Suggested Citation

  • Simpson, J.B., 1985. "State certificate-of-need programs: The current status," American Journal of Public Health, American Public Health Association, vol. 75(10), pages 1225-1229.
    • Handle: RePEc:aph:ajpbhl:1985:75:10:1225-1229_1
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    Cited by:

    1. Stratmann, Thomas & Baker, Matthew, 2016. "Are Certificate-of-Need Laws Barriers to Entry? How They Affect Access to MRI, CT, and PET Scans," Working Papers 06892, George Mason University, Mercatus Center.
    2. Stratmann, Thomas & Monaghan, Steven, 2017. "The Effect of Interest Group Pressure on Favorable Regulatory Decisions: The Case of Certificate-of-Need Laws," Working Papers 05196, George Mason University, Mercatus Center.
    3. Chiu, Kevin, 2021. "The impact of certificate of need laws on heart attack mortality: Evidence from county borders," Journal of Health Economics, Elsevier, vol. 79(C).
    4. Baker, Matthew C. & Stratmann, Thomas, 2021. "Barriers to entry in the healthcare markets: Winners and Losers from certificate-of-need laws," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).

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