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Cato Daily Podcast

What Does Data Tell Us about Certificate of Need in Health Services?

Dec 18, 2023
The podcast explores the negative effects of certificate of need laws in healthcare services, including limited availability and increased costs. It discusses the limitations of evaluating medical facility needs and the impact of these laws on healthcare services during the COVID-19 pandemic. The podcast also analyzes the changes in certificate of need laws in South Carolina and Florida, debunking misconceptions. Additionally, it highlights how these laws suppress wages, limit opportunities for healthcare workers, and hinder entrepreneurial endeavors and new services by physicians.
13:43

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Quick takeaways

  • Certificate-of-need laws make health care services relatively less available or more costly.
  • Certificate of Need laws hinder opportunities for physicians who wish to offer new services or practice in a different way.

Deep dives

The Impact of Certificate of Need Laws on Healthcare Access

Certificate of Need laws restrict the ability of healthcare providers to expand or establish new facilities, hindering convenient and considerate medical care. These laws require explicit permission from competitors who may lose business, rather than responding to the actual needs of patients. The formula used to determine need often overlooks those who are not currently receiving services due to limited availability. Preferences and specialties are also not considered. However, some states are now realizing the drawbacks of these laws, particularly after facing shortages during the COVID-19 pandemic. Changes are being made to free up private health service providers and increase accessibility to care.

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