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Providers issue brief: certificate of need
Issue Brief (Health Policy Tracking Service)
|November 10, 2000
Summary
Certificate of Need (CON) programs, initially federally mandated to control healthcare costs and prevent overdevelopment, were later abandoned by many states. Some states have since reintroduced CON regulations for new health facilities and major medical equipment.
Area of Science:
- Health policy
- Healthcare economics
Background:
- Federal mandate required all states to implement Certificate of Need (CON) programs.
- CON programs aimed to control healthcare costs and prevent facility overdevelopment.
Observation:
- Federal requirement for CON programs was lifted.
- Many states eliminated their CON programs after the federal mandate was removed.
- Several states later reinstated CON programs in varying forms.
Findings:
- Many states maintain CON programs requiring governmental approval for new health facilities and major medical equipment.
- CON programs regulate the construction of hospitals and long-term care facilities.
Implications:
- State-level CON programs continue to influence healthcare infrastructure development.
- The regulation of healthcare facilities and equipment acquisition persists in many states.