State Regulation of the Supply of Long Term Care Providers

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Abstract
After the removal of the federal reguirements for certificate of need (CON) in 1986, the majority of states (40) and the District of Columbia retained their CON and/or added a moratorium on new nursing facilities and beds. Some states were also regulating the growth of other types of long term care (LTC) facilities and home health agencies. States with a CON and/or moratoria were more likely to have a greater non- White population, to have liberal politicians, and to have a lower capacity to raise taxes. When state financial budgets are limited, policymakers are likely to continue to regulate the supply of LTC providers.