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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 mandated federally, regulate healthcare facility construction and major equipment acquisition. Many states maintain these programs to control costs and prevent overdevelopment, requiring governmental approval.
Area of Science:
- Health Policy
- Healthcare Administration
Background:
- Federal mandate previously required all states to implement Certificate of Need (CON) programs.
- CON programs were designed to control healthcare costs and prevent facility overdevelopment.
Observation:
- The federal requirement for CON programs was eventually lifted.
- Following the removal of the federal mandate, several states discontinued their CON programs.
- Some states have since reinstated CON programs in various forms.
Findings:
- Many states have continuously operated CON programs for years.
- These programs necessitate governmental approval for constructing new healthcare facilities like hospitals and long-term care centers.
- Approval is also required for the acquisition of significant medical equipment.
Implications:
- State-level CON programs continue to influence healthcare infrastructure development.
- The ongoing use of CON programs suggests a persistent focus on cost containment and strategic resource allocation in healthcare.
- Understanding state-specific CON regulations is crucial for healthcare providers and equipment vendors.