State Regulation of the Supply of Long Term Care Providers

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.