Certificate of Need Laws Show Entry Barriers Can Raise Spending

In most states, health care providers who seek to open a new hospital must obtain a “certificate of need” (CON) from a state board certifying that there is an “economic necessity” for their services. A new working paper published by the Mercatus Center finds that states with CON laws spend 3 percent more on health care than other states.  

Read more

Are “Pay for Delay” Settlements in Patent Litigation Collusive?

A new study suggests that “pay for delay” settlements–in which generic drug manufacturers that challenge the patents of branded drug firms agree to drop their challenge in exchange for sharing monopoly profits—decrease generic entry, inflate prices, and depress the quantity of competitors in the market. It also finds that eliminating “pay for delay” settlements entirely would result in a relatively small reduction in R&D.  

Read more
1 2 3