Ending nursing home certificate-of-need laws could spur innovation within the sector, one expert argued in a published journal piece in June.
Duke economics professor Henry Grabowski, Ph.D., wrote in a blog that certificate-of-need laws that restrict bed growth would be “unfathomable” for other industries such as hotels. Currently 34 states have such laws in place.
“The notion that public nursing home spending would greatly increase in the absence of a bed constraint simply does not make sense,” Grabowski wrote.
He pointed to previous research that found certificate-of-need laws negatively impact access and quality of care, while pushing up private-pay prices. He argued providers are driving the retention of CON laws due to concerns about keeping occupancy levels high.