Certificate-of-Need Laws and Healthcare Utilization During COVID-19 Pandemic

17 Pages Posted: 7 Aug 2020

See all articles by Sriparna Ghosh

Sriparna Ghosh

University of Cincinnati Blue Ash

Agnitra Roy Choudhury

Auburn University at Montgomery

Alicia Plemmons

Southern Illinois University Edwardsville

Date Written: July 29, 2020

Abstract

This paper investigates the impact of state-level Certificate-of-Need (CON) laws on COVID and non-COVID deaths in the United States during the SARS-CoV-2 pandemic. CON laws are legal limitations to the expansion and acquisition of medical services within a state and were not structured in a way to prepare or stockpile medical goods and services to the volume that has been required to meet demand swells during the recent pandemic. Our investigation primarily focuses on mortality caused by COVID and non-COVID related reasons, and in understanding how these laws affect access to healthcare for illnesses that might require similar medical equipment. Our baseline results suggest that mortality rates are higher in states with CON laws relative to that in states without any CON laws. Furthermore, states with high healthcare utilization due to COVID that reformed their CON laws during the pandemic saw a significant reduction in mortality resulting from natural death, Septicemia, Diabetes, Chronic Lower Respiratory Disease, Influenza or Pneumonia, and Alzheimer’s Disease in addition to reduction in COVID deaths.

Note: Funding: None to declare

Declaration of Interest: None to declare

Keywords: Certificate of Need, COVID, Mortality, Pandemic, Hospital Utilization, Difference in Difference

JEL Classification: I18, I11, K20

Suggested Citation

Ghosh, Sriparna and Roy Choudhury, Agnitra and Plemmons, Alicia, Certificate-of-Need Laws and Healthcare Utilization During COVID-19 Pandemic (July 29, 2020). Available at SSRN: https://ssrn.com/abstract=3663547 or http://dx.doi.org/10.2139/ssrn.3663547

Sriparna Ghosh

University of Cincinnati Blue Ash

9555 Plainfield Rd
Blue Ash, OH 45236
United States

Agnitra Roy Choudhury

Auburn University at Montgomery

College of Business
P.O. Box 244023
Montgomery, AL 36124-4023
United States

Alicia Plemmons (Contact Author)

Southern Illinois University Edwardsville ( email )

Edwardsville, IL 62026
United States

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