Trends in state certificate of need and moratoria programs for long term care providers

This study examined state policies for certificate of need or moratoria for new building, renovation, and remodeling of long-term care (LTC) providers, using a telephone survey of state officials in between 1990 and 2002. In 2002, the vast majority of states still continue to regulate the supply of nursing homes, hospital-based nursing homes, and facilities for the mentally retarded/developmentally disabled. Surprisingly, 18 percent of states regulate the supply of residential care facilities, 35 percent regulate home health agencies, and 37 percent regulate hospices. These state efforts to control supply are primarily based on cost containment strategies and assuring the appropriate distribution of LTC services. Where limits are placed on home and community service providers, however, access could be negatively impacted.