Roemer's law
Encyclopedia
In health policy, Roemer's Law may be expressed as follows: "in an insured population, a hospital bed built is a bed filled"

This rule was deduced by the American health services researcher Milton Roemer, working at the UCLA School of Public Health
UCLA School of Public Health
The UCLA School of Public Health is the graduate school of public health affiliated with UCLA, and is located within the Center for Health Sciences building on the UCLA campus. UCLA is located in the Westwood neighborhood of Los Angeles, California. The dean of the school is Linda Rosenstock, MD,...

. Roemer and colleagues found a positive correlation between the number of short-term general hospital
General hospital
A general hospital is a type of medical facility which is set up to deal with many kinds of disease and injury.General hospital may also refer to:*General Hospital, an American soap opera broadcast since 1963...

 beds available per 1,000 population and the number of hospital days used per 1,000 population.

Whilst clearly Roemer's Law will not always hold true (not every bed that is ever built will be filled), it does provide the underpinning for certificate of need
Certificate of Need
A Certificate of Need , in the United States, is a legal document required in many state and some federal jurisdictions before proposed acquisitions, expansions, or creations of facilities are allowed. CONs are issued by a federal or state regulatory agency with authority over an area to affirm...

 laws and for health planning .

The law is thought to be a consequence of induced demand
Induced demand
Induced demand, or latent demand, is the phenomenon that after supply increases, more of a good is consumed. This is entirely consistent with the economic theory of supply and demand; however, this idea has become important in the debate over the expansion of transportation systems, and is often...

 i.e. physicians encouraging patients to consume services that the patients would not have chosen had they been fully informed. Health planning and certificate of need
Certificate of Need
A Certificate of Need , in the United States, is a legal document required in many state and some federal jurisdictions before proposed acquisitions, expansions, or creations of facilities are allowed. CONs are issued by a federal or state regulatory agency with authority over an area to affirm...

laws aim to prevent the waste that would otherwise occur due to Roemer's Law.
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