Economic impact analysis for certificate of need applications.

Abstract

State certificate of need laws to assess the appropriateness of capital expenditures by health care providers are now mandatory for states which desire federal funds. The cost-effectiveness of proposed projects must be identified. The economic impact analysis outlined here provides for review of the capital and operating costs of and the resource demands made by a proposal. The approach presented provides for a sequential series of increasingly sophisticated analyses required as projects become more complex and use more highly technical resources.