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Abstract

Requiring the states to involve consumers in health planning through local health planning boards (HSAs) was an attempt by the federal government to control health care costs. Elimination of this requirement more recently has meant some states have discontinued the program. The elimination of HSAs can be considered a case of policy disinnovation. Drawing on the innovation literature, the following variables were expected to correlate, although negatively, with elimination of HSAs: value added to manufacturing, average acre value of farms, per capita income, population living in metropolitan areas, and party competition. All were found to correlate negatively. Predisposition to spend reflected in per capita state expenditures was also correlated negatively with elimination of HSAs, as was the average daily hospital room charge and average hospital cost per stay.

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