Cato Institute
Policy Analysis
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If state licensing
titioners seek certification from the American
Clinic, offer first-line health care, are staffed by
Nurses Credentialing Center. The ANCC offers
nurse practitioners, and are opening up in
were eliminated
nursing certification in 26 different specialties.
CVS, Target, and Wal-Mart stores across the
tomorrow,
According to that organization, more than
United States. These organizations have enor-
consumers would
75,000 advanced practice nurses are currently
mous incentives to maintain quality to protect
certified.88 Other organizations that certify
their reputations. For example, Minute Clinic
continue to be
nurse practitioners include the National Cer-
boasts of its adherence to evidence-based med-
protected.
icine guidelines.92 Wal-Mart has bet on brand
tification Board of Pediatric Nurse Practition-
names as a proxy for quality in promoting its
ers and Nurses, the National Certification
retail clinics. "The Clinic at Wal-Mart" brand
Corporation for the Obstetric, Gynecologic and
will partner with local hospitals in "co-brand-
Neonatal Nursing Specialties, the American
ed" walk-in clinics, relying on local hospitals'
Academy of Nurse Practitioners, and the
reputations to bring in consumers.93 Without
National Association of Nurse Practitioners in
Women's Health.89 These organizations are
state licensing, brand names and reputation
known in the medical community and serve as
would play an even greater role in health care
a guide in hiring nurses.
markets, such as by offering guidance to
If state licensing were eliminated tomor-
patients considering treatment in freestand-
row, consumers would continue to be pro-
ing outpatient surgery centers.
tected by this sophisticated network of well-
known private organizations that accredit
Conclusion
health care facilities and credential medical
professionals.
Medical licensure fails to meet expecta-
tions in the area of discipline and consumer
Brand Names: Would Additional
protection. State medical boards' disciplinary
Protections Arise without Licensing?
efforts can arguably be said to protect clini-
In many industries, markets assure quality
through brand names and reputation.90 Con-
cians more than consumers. Many actions
sumers rely on brand names as a quality signal
against clinicians are settled privately and
in markets for restaurants, clothing, automo-
after extended periods of time. Clinicians
biles, computers, and air travel. Thanks to
who have faced disciplinary actions often
brand names, a hungry traveler in a strange city
continue to practice, with no public disclo-
knows exactly the quality of cuisine he will get if
sure of the reasons for the sanction. The per-
he walks into a McDonald's versus a Chili's or a
sistent difference between the promise of
P.F. Chang's China Bistro.
licensing and its actual performance is sum-
Brand names have played a smaller role in
marized by one long-time observer of New
health care than in other industries, perhaps
York's licensing laws, who describes that
because of preemption by licensing boards
state's statutory authority as "exemplary" but
the state's use of that authority "shameful."94
and the perception of quality assurance asso-
Reforms that fail to appreciate the
ciated with licensure. However, brand name
propensity of licensing authorities to place
and reputation are growing as a basis for qual-
physician protection ahead of patient protec-
ity assurance in health care markets. Health
tion seem destined to repeat the failures of
plans that combine insurance and health care
licensing. Drs. Lucian Leape and John
delivery under one roof, such as Kaiser
Fromson call for sweeping changes to exist-
Permanente, stake their reputations on the
ing quality assurance measures, including
quality of their providers. The Cleveland
"explicit [national] performance standards of
Clinic, the Mayo Clinic, and other facilities
behavior and competence" for physicians.
have national reputations and are putting
them to use in telemedicine.91 Brand-name
While those standards would be based, as it
retail clinics, such as RediClinic and Minute
happens, on the voluntary Maintenance of
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