Running Head: CERTIFICATE OF NEED (C.O.

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Paper on

Certificate of Need (C.O.N)

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Certificate of Need: State Health Laws and Programs

Certificate of need (CON) program regulates healthcare market where healthcare

providers approve from states before the offering healthcare services to the community.

Approvals are granted to providers based on community needs in order to improve and sustain

quality care deliverables to patients. In addition, CON programs regulated in nursing homes,

requirement of number of beds in the hospital, and prevent unnecessary purchasing of

equipment. Thus, mandatory regulations are carefully examined by health planning agencies to

fulfill only urgent healthcare needs (Ncsl.org, 2019).

Certificate of need (CON) is an endorsement where various states are required to approve

before initiation of healthcare services. CON restrain healthcare cost as well as facilitate

coordinated planning of new facility services. Most of the states retain CON programs to manage

healthcare facility cons and restrict new entrants. The main advantage of CON programs is a

limitation on healthcare expenditure. In this regard, new services offered by provider may be

restricted due to no impact on the quality of care provided to patients. In this way, resources have

been efficiently utilized (Wolper, 2011). Secondly, healthcare managers can determine those

areas where the need for development or improvement actually required on the basis of a request

from providers and community. On the other hand, the disadvantage of CON programs is the

influence of politics instead of policy. Political clout and wealth can influence provider approval.

Secondly, the CON program reduces market competition. Therefore, low competition generally

increases prices and consumer predictably hurts (Rahman, Galarraga, & Zinn, 2016).

Three states that are required CON laws are Michigan, Arkansas, and Tennessee.

Michigan is one of the best states that reported positive results by utilizing CON programs.
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Michigan department of health and human services agency upgrade facility and minimize delays

(Ncsl.org, 2019).
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References

Ncsl.org. (2019). CERTIFICATE OF NEED STATE LAWS. Retrieved from

http://www.ncsl.org/research/health/con-certificate-of-need-state-laws.aspx

Rahman, M., Galarraga, O., & Zinn, J. S. (2016). The Impact of Certificate-of-Need Laws on

Nursing Home and Home Health Care Expenditures. Medical Care Research and

Review, 73(1), 85–105.

Wolper, L. F. (2011). Health care administration: Managing organized delivery systems (5th

ed.). Jones & Bartlett Learning.