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Excerpts from the Wall Street Journal--“Regulation or Competition?”
“In Michigan, the big auto companies --in concert with the United Auto Workers - – are loaded for bear in a fight to keep the state’s certificate-of-need law on the books…

“Officials of DaimlerChrysler AG went before a state panel in Lansing in March, testifying that the company’s annual health-care spending totals $3,519 per employee or family member in Wisconsin, and $2,741 in Indiana.  By contrast, the officials said its per-person spending is only $1,839 in Michigan and $1,331 in New York state, both have certificate-of-need laws…

“The auto executives argued that in states without regulation, more medical facilities have brought more medical procedures and higher costs, borne largely by employers… somebody has to pay for those bricks and mortar.”

 
Excerpts from Modern Healthcare magazine – “An Old Fashioned Way to Control Costs”
“Some of the nation’s largest employers – and purchasers of healthcare – have found that their healthcare costs are lower in states with CON…

“The Journal of the American Medical Association found that outcomes for open-heart surgery are better in states with CON than in those without.  This finding seems only natural, given the wealth of studies reporting improved outcomes when complex procedures are performed by high-volume providers…

“CON…mitigates these costly explosions and helps ensure the availability of quality, cost-effective healthcare.”

Excerpts from The Journal of the American Medical Association (JAMA) – “Mortality in Medicare Beneficiaries Following Coronary Artery Bypass Graft Surgery in States With and Without Certificate of Need Regulation”
“Mortality rates for Medicare patients undergoing CABG surgery were higher in states without certificate of need regulation…

“In a time when patient safety, medical errors, and patient outcomes are coming under greater scrutiny, certificate of need regulations may be an important and effective regulatory mechanism for ensuring higher quality care and better patient outcomes.”

Hawaii State Health Planning and Development Agency
1177 Alakea St. #402
Honolulu, HI 96813
Phone:  (808)-587-0788
FAX:  (808)-587-0783
Email: shpda@doh.hawaii.gov
© Thursday, January 30, 2003 - 05:42:33 AM