The effects of certificate of need regulation on hospital costs

Patrick A. Rivers; Myron D. Fottler; Jemima A. Frimpong

The effects of certificate of need regulation on hospital costs

Patrick A. Rivers, Myron D. Fottler, Jemima A. Frimpong

Social Research and Public Policy

Research output: Contribution to journal › Article › peer-review

Abstract

This study examines the impact of Certificate of Need Regulation (CNR) on hospital costs (HC). Secondary data from multiple sources were used for the analysis. A panel representing 2,168 short-term general, nonfederal US hospitals operating during the period 1999-2003 was analyzed. Results of our analysis indicate that the existence of a CNR program was not related to HC; however, the stringency of the CNR program was positively and significantly related to HC. Implications from these results include the inability of CNR to contain HC as assumed or expected, and the possibility that CNR may actually increase HC, while reducing competition.

Original language	English (US)
Pages (from-to)	1-16
Number of pages	16
Journal	Journal of Health Care Finance
Volume	36
Issue number	4
State	Published - Jun 2010

Keywords

Certificate of need regulation (CNR)
HC per adjusted admissions
Hospital competition
Hospital costs (HC)

ASJC Scopus subject areas

Health Policy

Cite this

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title = "The effects of certificate of need regulation on hospital costs",

abstract = "This study examines the impact of Certificate of Need Regulation (CNR) on hospital costs (HC). Secondary data from multiple sources were used for the analysis. A panel representing 2,168 short-term general, nonfederal US hospitals operating during the period 1999-2003 was analyzed. Results of our analysis indicate that the existence of a CNR program was not related to HC; however, the stringency of the CNR program was positively and significantly related to HC. Implications from these results include the inability of CNR to contain HC as assumed or expected, and the possibility that CNR may actually increase HC, while reducing competition.",

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AU - Rivers, Patrick A.

AU - Fottler, Myron D.

AU - Frimpong, Jemima A.

PY - 2010/6

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N2 - This study examines the impact of Certificate of Need Regulation (CNR) on hospital costs (HC). Secondary data from multiple sources were used for the analysis. A panel representing 2,168 short-term general, nonfederal US hospitals operating during the period 1999-2003 was analyzed. Results of our analysis indicate that the existence of a CNR program was not related to HC; however, the stringency of the CNR program was positively and significantly related to HC. Implications from these results include the inability of CNR to contain HC as assumed or expected, and the possibility that CNR may actually increase HC, while reducing competition.

AB - This study examines the impact of Certificate of Need Regulation (CNR) on hospital costs (HC). Secondary data from multiple sources were used for the analysis. A panel representing 2,168 short-term general, nonfederal US hospitals operating during the period 1999-2003 was analyzed. Results of our analysis indicate that the existence of a CNR program was not related to HC; however, the stringency of the CNR program was positively and significantly related to HC. Implications from these results include the inability of CNR to contain HC as assumed or expected, and the possibility that CNR may actually increase HC, while reducing competition.

KW - Certificate of need regulation (CNR)

KW - HC per adjusted admissions

KW - Hospital competition

KW - Hospital costs (HC)

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The effects of certificate of need regulation on hospital costs

Abstract

Keywords

ASJC Scopus subject areas

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