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Taking the CON out of Pennsylvania: Did Hip and Knee Replacement Patients Benefit?

Author

Listed:
  • Averett, Susan L.

    (Lafayette College)

  • Terrizzi, Sabrina

    (Moravian College)

  • Wang, Yang

    (University of Wisconsin-Madison)

Abstract

Policymakers and the general public have expressed increasing concern over rising health care costs. The Certificate-of-Need (CON) programs began at the federal level in 1974 to stem the increase in costs by limiting hospital expansion and acquisition of equipment. The federal requirement for CON programs ended in 1987; however, 37 states and DC still maintain various forms of CON programs. We examine the effect of the expiration of Pennsylvania's CON law on indicators of quality and cost of health care for patients undergoing hip and knee replacement surgery. We use the standard difference-in-differences method and the Synthetic Control method. Our preferred method indicates that the expiration had no statistically significant effect on our various measures of quality and cost.

Suggested Citation

  • Averett, Susan L. & Terrizzi, Sabrina & Wang, Yang, 2017. "Taking the CON out of Pennsylvania: Did Hip and Knee Replacement Patients Benefit?," IZA Discussion Papers 10917, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10917
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    References listed on IDEAS

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    1. David M. Cutler & Robert S. Huckman & Jonathan T. Kolstad, 2010. "Input Constraints and the Efficiency of Entry: Lessons from Cardiac Surgery," American Economic Journal: Economic Policy, American Economic Association, vol. 2(1), pages 51-76, February.
    2. Vivian Ho, 2006. "Does certificate of need affect cardiac outcomes and costs?," International Journal of Health Economics and Management, Springer, vol. 6(4), pages 300-324, December.
    3. Kolstad, Jonathan T. & Cutler, David M. & Huckman, Robert Steven, 2010. "Input Constraints and the Efficiency of Entry: Lessons from Cardiac Surgery," Scholarly Articles 5344226, Harvard University Department of Economics.
    4. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
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    More about this item

    Keywords

    certificate of need; knee and hip replacement; health care; cost; quality;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I10 - Health, Education, and Welfare - - Health - - - General

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