Title

Does Certificate Of Need Really Contain Hospital Costs In The United States?

Keywords

Certificate of need; Costs per adjusted admission; Hospital costs; Hospital markets

Abstract

Objective: This study examines the impact of certificate of need (CON) regulation on hospital costs. Design: A modified structure-conduct-performance paradigm was applied to a national sample of US hospitals in order to investigate the impact of CON regulation on hospital costs. Methods: Secondary data for 1957 US acute care hospitals in 301 standard metropolitan statistical areas (SMSAs) from the American Hospital Association's Annual Survey of Hospitals in 1991 were used. The dependent variable was hospital costs per adjusted admission in 1991. Predictor variables were the existence of a CON law in each hospital's state and the dollar limit (if any) required for CON approval. Control variables were environmental, market, and institutional characteristics. Associations between predictor and dependent variables were investigated using multiple regression analyses. Results: The results indicate that CON laws had a positive, statistically significant relationship to hospital costs per adjusted admission. Conclusion: These findings suggest not only that CON do not really contain hospital costs, but may actually increase them by reducing competition. Implications for public policy are discussed. copyright © SAGE 2007.

Publication Date

9-1-2007

Publication Title

Health Education Journal

Volume

66

Issue

3

Number of Pages

229-244

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1177/0017896907080127

Socpus ID

34548019050 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/34548019050

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