The National Health Planning and Resources Development Act, or Public Law 93-641 is a piece of 1974

American American(s) may refer to: * American, something of, from, or related to the United States of America, commonly known as the "United States" or "America" ** Americans, citizens and nationals of the United States of America ** American ancestry, pe ...

Congressional legislation. Many Certificate of Need programs trace their origin to the act which offered incentives for states to implement these programs.Certificate of Need Laws: A Prescription for Higher Costs
"In 1974, Congress passed a mandate for all states to establish a CON program as part of the National Health Planning and Resources Development Act."

Details of the Act

In this Act, three distinct existing programs were consolidated: *'' Hill-Burton'' *''Regional Medical Program'' *''Comprehensive Health Planning Act'' Congress realized that the provision of

federal Federal or foederal (archaic) may refer to: Politics General *Federal monarchy, a federation of monarchies *Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...

funds for the construction of new

health care Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is delivered by health profe ...

facilities was contributing to increasing health care costs by generating duplication of facilities. The intent of Congress in passing this Act was to create throughout the United States, a strengthened and improved federal-, state- and area-wide system of health planning and resources development that would help provide solutions to several identified problems. The perceived problems the Act was intended to address were as follows: * lack of equal access to quality health care at reasonable cost * infusion of federal funds into the health care system was contributing to

inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...

ary health care costs while failing to produce an adequate supply or distribution of health resources * the lack of a comprehensive, rational approach by the

public In public relations and communication science, publics are groups of individual people, and the public (a.k.a. the general public) is the totality of such groupings. This is a different concept to the sociological concept of the ''Öffentlichkei ...

and

private sector The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government. Employment The ...

s to creation of uniformly effective methods of delivering health care * misdistribution of health care facilities and manpower * increasing and uncontrolled inflation of health care costs, particularly the costs associated with

hospital A hospital is a health care institution providing patient treatment with specialized health science and auxiliary healthcare staff and medical equipment. The best-known type of hospital is the general hospital, which typically has an emerge ...

stays * inadequate incentives for the use of alternative levels of health care and the substitution of ambulatory and intermediate care for inpatient hospital care * the lack of basic knowledge regarding proper personal health care and methods for effective use of available health services in large segments of the population This legislation was also intended to encourage health care providers to play an active role in developing health

policy Policy is a deliberate system of guidelines to guide decisions and achieve rational outcomes. A policy is a statement of intent and is implemented as a procedure or protocol. Policies are generally adopted by a governance body within an organ ...

References

{{reflist

External links

Bill summary
1974 in law United States federal health legislation