Taking the Con Out of Pennsylvania: Did Hip and Knee Replacement Patients Benefit?

34 Pages Posted: 31 Aug 2017

See all articles by Susan L. Averett

Susan L. Averett

Lafayette College - Department of Economics & Business

Sabrina Terrizzi

Moravian College

Yang Wang

Lafayette College

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.

Keywords: certificate of need, knee and hip replacement, health care, cost, quality

JEL Classification: I18, I10

Suggested Citation

Averett, Susan and Terrizzi, Sabrina and Wang, Yang, Taking the Con Out of Pennsylvania: Did Hip and Knee Replacement Patients Benefit?. IZA Discussion Paper No. 10917. Available at SSRN: https://ssrn.com/abstract=3029787

Susan Averett (Contact Author)

Lafayette College - Department of Economics & Business ( email )

Easton, PA 18042
United States
610-250-5307 (Phone)
610-250-8961 (Fax)

Sabrina Terrizzi

Moravian College

Yang Wang

Lafayette College ( email )

Easton, PA 18042
United States
610-330-5298 (Phone)
610-330-5715 (Fax)

HOME PAGE: http://economics.lafayette.edu/

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