The enactment of changes in health care policy necessitates monitoring industry practice to assure a response in line with intent. Theory predicts that tightly controlled organizations produce too few services to meet needs. Those under milder restrictions produce too many services to compensate for perceived losses in revenue. This study explores the relationship, if any, between level of regulatory intensity upon, and subsequent service delivery within, the hospital industry. Some service retrenchment may be desirable, particularly if fewer iatrogenic events occur. Too few services proffered are harmful. A look at prior efforts may prove beneficial before the United States initiates overall health care reform.