Business, 28.05.2020 05:01, growingideas

Most states restrict the number of hospitals in a given geographic area under "Certificate of Need" (CON) laws. These laws require any new hospital facility to provide evidence that there is a demand for its facility that is not currently being met by the existing healthcare facilities in that geographic market.

Identify the market inefficiency that these CON laws are trying to fix.

How does restricting the number of hospitals correct this inefficiency? Explain briefly.

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Most states restrict the number of hospitals in a given geographic area under "Certificate of Need"...