The Impact of Repealing Certificate‐of‐Need Laws on Healthcare Spending: A Causal Analysis

Certificate-of-Need laws in 35 US states require healthcare providers to obtain government approval before building new facilities or expanding services. Their stated goal is to ensure a genuine community need and avoid redundant services, with the aim of controlling healthcare costs and distributing resources fairly, although their effectiveness is debated. Our study differs from previous literature as we present the causal effects of repealing Certificate-of-Need laws on various healthcare expenses using modern difference-in-differences techniques and event studies. Our findings suggest that repealing Certificate-of-Need laws can reduce the burden of healthcare spending.