State Policy
Cato Institute Report Finds Certificate of Need Laws Restrict Healthcare Access
The Cato Institute released a report analyzing nearly 130 studies on certificate of need (CON) laws, which require healthcare providers to obtain state approval before constructing new facilities or adding services. The report concludes that CON laws restrict healthcare access and competition. CON laws remain in effect in approximately 35 states and directly affect Medicaid beneficiaries' access to nursing homes, dialysis centers, home health agencies, and other services that require state approval before expansion. The analysis adds to ongoing state-level debates over repealing or reforming CON requirements.
Why it mattersCON laws in 35 states directly determine whether Medicaid beneficiaries can access new nursing homes, dialysis centers, and other certificate-required services, making this research relevant to state Medicaid agencies evaluating provider network adequacy and access.