Reference no: EM132341034

Discuss the effectiveness of certificate-of-need (CON) regulation in controlling healthcare expenditures. Provide a background/history of CON, discuss its effectiveness in controlling costs, and provide at least one example. 220 words

Arriana Harris

Certificate- of-need statues were state enacted

legislation had the primary purpose of controlling capital expenditures by health facilities (Shi, & Singh, 2015, pg 479). This process required prior approval from a state government agency for either the expanding of facilities or building new buildings; including appliances. To be approved, demonstration of these services must be displayed. The adoption of CON was easier as many hospitals supported the CON benefit as they could use it for their own benefits. Many hospitals did not want additional capital spending to be used on new construction and equipment. Even though it could be beneficial, CON laws did not lower expenditures and represented a conservative approach to contain the rise in hospital cost as it did not address reimbursement and no ways to change behavior in patients and physicians. This regulation contained Medicaid cost and restricted the supply of nursing home beds (Shi, & Singh, 2015, pg 480)

Reference

Sh, L., & Singh, D. A. (2015). Delivering health care in America: A systems approach. Jones & Bartlett Learning.