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