Certificate of need laws require state approval before building or expanding certain healthcare facilities and services.
Purpose
Controlling capacity, cost and distribution of services; contested policy.
Coverage
Varies by state: hospitals, beds, equipment, surgery centers, nursing homes and specific services.
Trend
Some states repealing or narrowing; others maintaining.
Common mistake
Assuming a project is exempt without checking the current statute and thresholds.
Worked Example
A surgeon group plans to open an ambulatory surgery center in a state with certificate of need requirements. They assume that because the center is physician-owned and small, it is exempt. Review of the statute shows surgery centers above a capital threshold require approval, and the threshold is below their budget. Discovering this after signing a lease would have cost months and money; discovering it in planning allows an application to be filed on schedule.
Key Takeaways
- Controlling capacity, cost and distribution of services; contested policy.
- Varies by state: hospitals, beds, equipment, surgery centers, nursing homes and specific services.
- Some states repealing or narrowing; others maintaining.
Check Your Understanding
Before moving on, explain in your own words the most important point from “What Certificate of Need Programs Are” and name one situation in your work or family where you would apply it, and who you would report to or ask if unsure.
Action Step
Determine whether your state has certificate of need requirements and what they cover.
This course is educational only. It is not legal, regulatory, financial, tax or clinical advice, does not create a consultant-client or attorney-client relationship, and does not issue any license, certification or credential. Healthcare laws and regulations change frequently and vary by state; consult qualified healthcare counsel, compliance officers and licensed professionals before acting on any matter discussed here.