Cost Containment
n In the 1970’s replaced the social expansion of the
1960’s War on Poverty
F Legislation was enacted to contain rapid increases in
health care expenditures
2 Health Planning Act of 1974 was a major effort in this battle
designed to reign in costs by preventing unnecessary expansion
in the health care delivery system
2 Expansion of Certificate of Need programs states were able to
constrain the expansion of hospitals in particular, the theory
was that each new hospital bed increased overall expenditures,
regardless of the rational need for the bed