Affiliation:
1. Knee Regulatory Research Center West Virginia University Morgantown West Virginia USA
2. Department of Economics Providence College Providence Rhode Island USA
Abstract
AbstractThirty‐five U.S. states currently have Certificate‐of‐Need (CON) laws, which require health care providers to prove their “economic necessity” to a state board before they can legally open or expand. While dozens of articles have evaluated the effect of CON on hospitals and consumers, no published article has evaluated its effect on health care workers. We argue that the sign of the effect of CON on both the wages and employment is theoretically ambiguous. We conduct an empirical analysis of CON laws using 1979–2019 data from the Current Population Survey. We find that CON does not significantly affect the employment or wages of health care workers.
Funder
Institute for Humane Studies, George Mason University
Reference19 articles.
1. Input and Technology Choices in Regulated Industries: Evidence from the Health Care Sector
2. American Health Planning Association. (2023)Certificate of need matrix of service coverage.http://www.ahpanet.org/matrix_copn.html
3. Arnold D.(2021)Mergers and acquisitions local labor market concentration and worker outcomes. UCSD working paper.https://darnold199.github.io/jmp.pdf
4. Competition and health‐care spending: Theory and application to Certificate of Need laws
5. Bailey J.(2021)Certificate of need in North Carolina: cost access treatment. Technical report John Locke Foundation.https://www.johnlocke.org/research/certificate-of-need-north-carolina/