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Why is health care so expensive in America? Here’s one weird reason: In most states, you need the government’s permission to build a new hospital. 35 states (and Washington, D.C.) have what are known as “certificate-of-need” laws, which prevent hospitals from being built without the approval of government planners. In fact, those restrictions even apply to expanding existing hospitals. The idea behind the laws was that they’d save money by eliminating redundant services and prevent hospitals from concentrating their services in wealthier neighborhoods. All of which sounds reasonable, except … it didn’t work. In practice, these laws allow existing health care providers to lobby against new competitors. As a result, states with certificate-of-need laws average about 25% fewer hospital beds per capita than states without them. And research has found that they drive up the cost of health care as well. So what happens when certificate-of-need laws go away? States that repealed them saw health care spending go down by nearly 5% in the following years. 📝 SCRIPT 📚 ADDITIONAL READING ✅ SOURCES AND MORE at https://kiteandkey.media/4kYYFXX The world is complicated … but the explanations don’t have to be. ⚡ New videos every Wednesday. SUBSCRIBE to Kite & Key on YouTube: https://bit.ly/YouTubeKiteAndKey FOLLOW Kite & Key on your favorite social channel: / kiteandkeymedia / kiteandkeymedia / kiteandkeymedia / kite-and-key-media / kiteandkeymedia https://www.threads.net/@kiteandkeymedia MUSIC ID: ERGRVCXQCPCXF4FF