The Cost Of Regulation in Healthcare

From an economic perspective, describe the cost of regulation in the healthcare environment.

Place your order today!



Healthcare regulations play a significant role in protecting the public from several health risks and providing programs for people’s health and welfare. According to LaPointe (2017), the cost of regulation is a product of operational activities carried out by regulatory agencies and hospitals.

The Cost of Regulation in Healthcare

Several regulatory bodies and healthcare systems incur costs from payments and the running of different operations. There exists a myriad of rules and regulations governing the healthcare system and some of the requirements and penalties siphon off millions of money, which could cater to patient care (LaPointe, 2017). The regulations include those governing drugs, outpatient care, inpatients care, insurance, meaningful use, privacy, security, and quality reporting among others. Studies show that the rules and regulations on healthcare pose a significant burden for health organizations and healthcare systems. According to Genzen (2019), different regulations may exist for the same product or service and yet attract regulatory requirements, which require payment.

Undue regulations burden health organizations and health systems increasing the overall spending and cost of running healthcare facilities. Hospitals spend a lot of money each year on the labor needed to comply with state regulations. For example, an average-sized hospital with a 161-bed capacity spends USD 7.6 million yearly on regulatory activities (LaPointe, 2017). Studies show that state regulations on healthcare increase the overall cost of health care for the hospital and state. Genzen (2019) recommends that the governments review current regulations before the advancement of future regulatory proposals on healthcare


The cost of regulation on healthcare is a burden to health organizations and health systems, which pay for to avoid penalties. Excessive spending causes struggles for the providers on balancing administrative obligations with the provision of quality care.


LaPointe, J. (2017). Hospitals, Systems Spend $39B Annually on Regulatory Compliance. Revcycleinteligence

Genzen, J. R. (2019). Regulation of laboratory-developed tests: a clinical laboratory perspective. American journal of clinical pathology152(2), 122-131.