This is the Cato Daily Podcast for Thursday, March 9th, 2023.

I'm Caleb Brown.

Certificate of Need consistently prevents new health care capacity from coming online.

It raises prices, harms consumers, and protects entrenched interests.

A new study from the Beacon Center in Tennessee

identifies local consequences to these policies.

I spoke with Beacons Ron Schultis last week.

When we try to evaluate the impact of giving incumbent businesses the ability to veto the activities of businesses that I would either like to expand

or establish themselves in a given market area, what can we say with confidence about the impact?

Just broadly.

Sure, I think the first thing is we see how, for example, in certificates of need, which just as a reminder to your listeners, Caleb, is where essentially we're used to hospitals having to be licensed, right, a health care

facility and that's one thing.

But this is a whole different level to where if you want to expand your health care facility, whether it's get a new

MRI machine, add additional beds. Not only do you have to prove that you can meet certain qualities,

but you have to prove that there is a market shortage of them.

And so you have to prove to a government board that there is a demand, a market demand for additional

hospital beds or additionalRI machines.

And what essentially can happen is,

is that incumbents in the market can say,

oh, no, no, no, we can meet the demand for this service,

right, and essentially act as a veto. we can meet the demand for this service, right?

And essentially act as a veto on

...