Answer to Question #49620 in Economics of Enterprise for Chris-Obi

Question

Do certificate-of-need (CON) rules reduce costs or reduce access?

Answer 1

A Certificate of need (CON), in the United States, is a legal document required in many states and some federal jurisdictions before proposed acquisitions, expansions, or creations of facilities are allowed. CONs are issued by a federal or state regulatory agency with authority over an area to affirm that the plan is required to fulfill the needs of a community.
So, it reduces access.