Certificate of Need (CON) laws are state regulations requiring healthcare providers to get approval before expanding services or facilities. While intended to control costs and prevent unnecessary duplication, their actual impact remains unclear due to gaps in research. Key unanswered questions include how often applications are approved, how these laws affect outcomes like hospital bed availability or Medicare spending, and whether modern research methods could provide better insights.
One way to tackle these gaps would be to conduct a comprehensive study combining data collection, econometric analysis, and case studies. This could involve:
Modern techniques like staggered difference-in-differences could help address challenges like states adopting laws at different times or having varying healthcare systems.
The findings could help policymakers make evidence-based decisions about these laws. Healthcare providers might use the insights to navigate approval processes, while patients could benefit from improved access and affordability. A phased approach might work best:
Some obstacles would need consideration, like potential resistance from hospitals benefiting from current laws or variations in state data quality. These could be addressed by framing findings neutrally, partnering with states for better data access, and using multiple data sources to verify results.
By providing clearer evidence about how these laws actually work, such research could inform important decisions about healthcare regulation while demonstrating how to study similar policy questions.
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Research