Association for Public Policy Analysis & Management

Panel: Impacts of Regulation Policies in the Health Care Sector

(Health Policy)

The health care sector is home to nearly 20% of US GDP, and its products and services are in persistently high demand. The collection of medical care, treatments, and innovations is also somewhat unique due to the degree of regulatory attention it receives. In the interests of ensuring safety and quality as well as improving the functioning of health care delivery, policymakers routinely consider existing and new regulatory laws tailored toward this specific piece of the economy. Naturally, policymakers require ample empirical evidence in order to appropriately weigh the costs and benefits of stronger versus weaker regulations pertaining to health care. And having a data-driven understanding of the breadth of potential effects from a given regulation helps steer future policy in appropriate directions, which can then enhance US health care delivery. The four papers belonging to this panel each touch on unique and important regulatory elements that affect a wide variety of actors within the health care system. The first paper examines legislation that allows for greater use of non-physician clinicians in medical care settings. The findings have relevance to cost-containment strategies, quality of care, and helping supply adjust to new demand in the wake of Affordable Care Act insurance expansions. The second paper focuses on not-for-profit hospitals’ mandated community benefit requirements and assesses if these institutions shirk on their regulated responsibilities when faced with stronger market forces. The panel’s third piece explores whether or not facilitating versus prohibiting third-party entities from financially supporting plaintiffs in medical malpractice cases influences the performance of the medical liability tort system – with clear implications for consumers, patient advocates, and health care providers. The final paper captures the unintended spillover effects of tighter immigration policy across all US labor markets on the supply and availability of foreign-trained physicians. The research shows that hospitals are very sensitive to regulatory burdens related to immigration and will adjust their recruitment strategies accordingly. These choices also carry substantive downstream consequences for the broader health care system in terms of provider quality and provider access in underserved areas. Taken together, the panel represents a diverse blend of regulatory issues, and the accompanying research has the ability to impact a number of timely policy challenges facing one of the most influential sectors in the US economy.