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Cato Daily Podcast

Certificate of Need Laws and Pandemic Response

Dec 11, 2024
Jaimie Cavanaugh, a researcher at the Pacific Legal Foundation, dives into the shortcomings of certificate of need laws during the pandemic. She highlights how these regulations hindered healthcare facilities, resulting in higher mortality rates in affected states. Cavanaugh also discusses South Carolina's recent repeal of such laws, aimed at improving access to essential health services. Additionally, she emphasizes women's autonomy in childbirth and the barriers restrictive licensure laws pose to midwives, shedding light on the urgent need for reform in maternal care.
11:14

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Quick takeaways

  • Certificate of need laws led to increased hospital bed shortages and higher COVID-19 mortality rates during the pandemic.
  • The recent repeal of these laws in states like South Carolina aims to enhance access to crucial healthcare services, especially for maternal care.

Deep dives

Impact of Certificate of Need Laws During the Pandemic

States with certificate of need laws faced significant challenges during the pandemic, notably with hospital bed shortages. Research revealed that hospitals in these states were 27% more likely to run out of beds, even with emergency waivers allowing for additional bed capacity. The longstanding restrictions on expanding hospital facilities created a rigidity that hindered quick adaptation in response to the crisis. Additionally, higher COVID-19 mortality rates were noted in states with these laws, underscoring the detrimental effects of such regulatory frameworks during emergency situations.

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