Three Ways Government Regulation Is Creating a Hospital Bed Shortage

Source: Foundation for Economic Education
by Hannah Cox

“Many Americans are unaware of the presence of Certificate of Need (CON) laws. These laws are appropriately named because they are a total con: an arrangement between the government and large healthcare providers to limit competition and keep prices artificially high. This is a textbook case of cronyism …. Implemented in the 1970s, a total of 27 states still have CON laws in operation, and many of those states — like Alabama, Mississippi, and Arkansas — are the ones most strapped for hospital beds at the moment. That’s because these laws arbitrarily restrict the amount of beds in a state, as well as the number of hospitals and other medical equipment.” (08/31/21)