Should Minnesota Reinstate a Certificate of Need Program for Health Care Capital Expenditures?
Abstract
The Minnesota Department of Health regulates capital investments made by hospitals,
ambulatory surgery centers, diagnostic imaging centers, and physician clinics. The
primary purpose of these regulations is to reduce health care spending by preventing
the development of excess health care supply capacity. Most states regulate health
care investments using a certificate-of-need (CON) law. CON programs require “prospective”
review of expenditures, meaning that health care providers must obtain permission
from the state before making major capital investments. Minnesota has not maintained
a formal CON program since 1984. Instead, Minnesota mainly uses a “retrospective”
review process in which the state reviews capital investments only after the provider
has already made an investment. Analyses by the state have determined that current
capital expenditure regulations are not providing significant cost control for Minnesota’s
health care system. This report examines whether reinstating a CON program would
improve the law’s effectiveness in controlling health care costs, and examines the
impact that CON would have on other dimensions of Minnesota's health care system,
such as quality and access to care. Based on existing empirical literature, this
report concludes that there is insufficient evidence to justify the adoption of a
CON program in Minnesota.
Type
Master's projectDepartment
The Sanford School of Public PolicyPermalink
https://hdl.handle.net/10161/9736Citation
Moran, Patrick (2015). Should Minnesota Reinstate a Certificate of Need Program for Health Care Capital Expenditures?.
Master's project, Duke University. Retrieved from https://hdl.handle.net/10161/9736.More Info
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