Eects of Ownership Restrictions on the Usage, Availability and Organization of Magnetic Resonance Imaging

I examine the eect of state legislation restricting physician investment in magnetic resonance imaging (MRI) facilities on the usage (number of procedures) and availability (number of machines) of MRIs. My analysis uses data from an MRI census performed from 1992-1998 and information on state legislation restricting physician investments in MRI facilities. I nd this legislation decreases the number of MRI machines available by 12%. In addition, I nd that the laws are to shift where procedures are performed and where machines are located away from hospitals to non-hospital facilities. I do not nd conclusive evidence that the law decreases overall usage of MRIs.