The effects of certificate of need regulation on hospital costs

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

Research output: Contribution to journalArticle

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 languageEnglish (US)
Pages (from-to)1-16
Number of pages16
JournalJournal of Health Care Finance
Volume36
Issue number4
StatePublished - Jun 2010

Keywords

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

ASJC Scopus subject areas

  • Health Policy

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