Arkansas passed its certificate of need laws in 1975. | Adobe Stock
Arkansas passed its certificate of need laws in 1975. | Adobe Stock
Arkansas is one of the few states that retained the certificate of need regulations during the COVID-19 pandemic.
Certificate of need regulations were established by the federal government in the 1970s to prevent duplicates of health care facilities and contain costs, WSPA reports.
Americans for Prosperity analyst Candace Carroll highlighted the problems posed by a certificate of need laws during the COVID-19 crisis, saying “For hospitals to be able to increase that capacity rapidly without having to go through this archaic system of getting a permission slip from the government and competitors allowed them to care for more patients.”
Thirty-six states, including Arkansas, currently limit entry or expansion of health care facilities through certificate-of-need (CON) programs, meaning that health care providers are prohibited from entering new markets or making changes to their existing capacity without first gaining approval from state regulators.
Arkansas passed its certificate of need laws in 1975, which cover six devices and services, including nursing home beds and long-term care beds, psychiatric services, and assisted living and residential care facilities.
A recent study conducted by Thomas Stratmann and Jacob Russ of George Washington University found no relationship between CON programs and increased access to health care for the poor. The study also found that Arkansas’ CON programs have resulted in 2,937 fewer hospital beds, between six and 12 fewer hospitals offering magnetic resonance imaging (MRI) services, and between 15 and 21 fewer hospitals offering computed tomography (CT) scans.
Studies show that strict enforcement of CON programs can cause health care costs to rise by as much as 5%.
Co-founder of the Scope of Practice and Medical Licensure Research Group at the University of Central Arkansas, Alicia Plemmons’ research led her to say, “Many states temporarily suspended certificate of need laws during the pandemic, and now they are wondering how it affected access to healthcare for our most vulnerable populations, and if some of these changes should be considered long-term.”
Arkansas is one of only 15 states to keep CON regulations in place during the pandemic.
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