Nursing Home Certificate-Of-Need Laws Should Be Repealed

Health Affairs Blog, 9 June 2017
Author: David Grabowski
“Despite evidence against them, 34 states still have certificate-of-need laws on the books. One reason why states have maintained these laws is their incredible popularity with nursing homes. If a system is lucky enough to have a regulated monopoly, it will not give that monopoly up easily. Nursing homes have argued that certificate of need allows them to keep sufficient occupancy levels to cover their costs. This guaranteed occupancy is a boon for nursing homes, but hurts consumers. If a nursing home cannot maintain sufficient occupancy without certificate of need, it is likely a sign that the nursing home is not providing adequate quality.”
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