Do Certificate-of-Need Laws Increase Indigent Care?

32 Pages Posted: 12 Jul 2018

See all articles by Thomas Stratmann

Thomas Stratmann

George Mason University - Buchanan Center Political Economy; George Mason University - Mercatus Center; CESifo (Center for Economic Studies and Ifo Institute)

Jacob Russ

George Mason University

Date Written: 07/15/2014

Abstract

Many states have certificate-of-need regulations, which prohibit hospitals, nursing homes, and ambulatory surgical centers from entering new markets or making changes to the existing capacity of medical facilities without first gaining approval from certificate-of-need regulators. These regulations purport to limit the supply of medical services and to induce regulated institutions to use the resulting economic profits to cross-subsidize indigent care. We document that these regulations do limit supply. However, we do not find strong evidence of higher levels of indigent-care provision in states that have certificate-of-need regulations as opposed to those that do not.

Suggested Citation

Stratmann, Thomas and Russ, Jacob, Do Certificate-of-Need Laws Increase Indigent Care? (07/15/2014). MERCATUS WORKING PAPER, Available at SSRN: https://ssrn.com/abstract=3211637 or http://dx.doi.org/10.2139/ssrn.3211637

Thomas Stratmann (Contact Author)

George Mason University - Buchanan Center Political Economy ( email )

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703-993-2330 (Phone)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
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HOME PAGE: http://www.mercatus.org/scholars/thomas-stratmann

CESifo (Center for Economic Studies and Ifo Institute)

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Munich, DE-81679
Germany

Jacob Russ

George Mason University ( email )

4400 University Drive
Fairfax, VA 22030
United States

HOME PAGE: http://www.JakeRuss.com

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