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Relentless Health Value™

EP444: Two State Healthcare Laws Often Don’t Go as Planned: CON and COPA, With Ann Kempski

Jul 11, 2024
Healthcare consultant Ann Kempski discusses the unintended consequences of state healthcare laws CON and COPA. They explore issues with market consolidation, impact on costs, and potential monopolies. The episode highlights the need for vigilant oversight and diverse stakeholder involvement in regulatory terrain.
35:19

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • CON laws aim to reduce supply-driven demand but inadvertently benefit incumbents, leading to consolidation and higher costs.
  • COPA laws immunize certain healthcare mergers but may create monopolistic situations, potentially distorting markets and reducing competition.

Deep dives

Certificate of Need Laws: Intentions vs. Outcomes

State healthcare laws like Certificate of Need (CON) laws were put in place to cut down on supply- driven demand to potentially lower total cost of care. However, the unintended consequences have shown that these laws may inadvertently benefit incumbents, leading to consolidation and higher costs. The oversight committees meant to evaluate need may be influenced by conflicts of interest, favoring established entities over newcomers. Despite good intentions, these laws may not always achieve the desired competition and cost-efficiency.

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