States without certificate of need regulations for cardiac care had lower costs per patient for coronary artery bypass graft surgery, according to a study in Medical Care Research and Review.
The authors studied Medicare data from 1991 to 2002 in 34 states with CON regulations for cardiac care. Seven of these states dropped the regulation during the study period. States that dropped the CON had a 4 percent decrease in the average cost of patient care for CABG, according to a news release from Rice University, where lead author Vivian Ho serves as chair in health economics. In addition, the cost savings slightly exceeded the total fixed costs of new CABG facilities built after CON regulations were dropped.
Ms. Ho suggested the competition in states without cardiac CON requirements motivated facilities to improve quality, which may have lowered costs due to fewer complications.
As a previous study suggested CON regulations do not improve quality, the authors concluded the regulations for cardiac care may not be justified in terms of quality or cost.
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The authors studied Medicare data from 1991 to 2002 in 34 states with CON regulations for cardiac care. Seven of these states dropped the regulation during the study period. States that dropped the CON had a 4 percent decrease in the average cost of patient care for CABG, according to a news release from Rice University, where lead author Vivian Ho serves as chair in health economics. In addition, the cost savings slightly exceeded the total fixed costs of new CABG facilities built after CON regulations were dropped.
Ms. Ho suggested the competition in states without cardiac CON requirements motivated facilities to improve quality, which may have lowered costs due to fewer complications.
As a previous study suggested CON regulations do not improve quality, the authors concluded the regulations for cardiac care may not be justified in terms of quality or cost.
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