Impacts of Certificate-of-need State Laws on Substance Abuse Treatment Facilities and Services

Shishir Shakya and Christine Bretschneider Fries

No 23-08, Working Papers from Department of Economics, Appalachian State University

Abstract: We investigate how the Certificate-of-need laws influence access to substance abuse treatment facilities in the United States. First, we use the National Directory of Drug and Alcohol Abuse Treatment Facilities dataset, which lists all federal, state, and local government facilities and private facilities that provide substance abuse treatment services in 2020. We also use Geocodio, a geocoding tool, to determine the precise locations of these facilities. Next, we develop a novel access index that accounts for both driving distance and travel time to measure the ease of reaching these facilities for individuals living at the population-weighted county centroids. Our findings indicate that counties located in states with Certificate-of-need laws have 10% lower access to substance abuse treatment services compared to their neighboring counties in states without such regulations. Key Words: Certificate-of-need laws, Substance abuse treatment services, Spatial accessibility

Date: 2023
New Economics Papers: this item is included in nep-hea and nep-ure
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