Table 2 Costs and Benefits of Certificate of Need Regulation (millions of 2008 dollars)

Government Regulatory Costs

20

9

31

–

–

–

 Federal

–

–

–

–

–

–

 State

20

9

31

–

–

–

[A]

Compliance Costs

146

109

182

–

–

–

 Administrative costs

146

109

182

–

–

–

[B]

Key Impacts

3272

677

7836

2786

1291

4418

 Health expenditures

2023

104

6044

2023

848

3229

  Reduction in CABG facilities

–

–

–

456

233

711

[C]

  Medicare spending

–

–

–

1566

416

2748

[D]

  All other health spending

2023

104

6044

–

[E]

 Patient time losses

2

1

3

[F]

 Health status

1247

314

3746

764

(1)

1974

  Morbidity losses

–

–

–

–

–

–

  Mortality losses

1247

132

3541

764

(1)

1974

   General elderly hospital mortality

1027

44

3303

–

[G]

   CABG mortality, all patients

463

(199)

1455

[H]

   CABG mortality, Medicare patients, stringent CON states

300

(4)

807

[I]

   CABG mortality rates, Medicare patients non-stringent CON states

220

(97)

701

[J]

Social Welfare Losses

512

66

1453

861

295

1511

 Efficiency losses from tax collection

8

4

13

755

192

1400

[K]

 Efficiency losses from regulatory costs

504

58

1446

106

54

168

[L]

GRAND TOTAL

3949

932

9380

3647

1658

5821

NET BURDEN (COSTS MINUS BENEFITS)

302

(3556)

5987

54%