As the coronavirus crisis mounts, the financial strain on North Carolina’s hospitals is growing. To meet the crisis, hospitals are making major changes in operations, facilities and staffing – changes that cost some systems tens of millions of dollars a month. The financial-rescue bill passed by Congress last week includes $1.2 billion for North Carolina’s […]
Main Content
What is Certificate of Need (CON)?
Certificate of Need (CON) laws are designed to contain health care costs by conducting an analytical, fact driven review before approving new health care facilities and services. This prevents the unnecessary duplication of medical facilities. All new hospitals as well as many other health care facilities including ambulatory surgical facilities must first obtain a Certificate of Need (CON) before initiating development.
Why it matters
North Carolina has a robust and transparent Certificate of Need (CON) process in place that ensures affordable health care services are meeting the needs of local communities. The current process provides local communities a planning tool that can be used in their economic development and recruitment of job producing companies. Community hospitals are large employers and they are important economic recruitment tools that are considered by businesses contemplating expansion and relocation. Undermining the current Certificate of Need (CON) process hurts hospitals and hurt communities.
Get the Facts
About Us
North Carolina Business Leaders for Health is a coalition of leaders across North Carolina that realizes the important connection between our Certificate of Need laws and long-term economic development and jobs.
North Carolina Business Leaders for Health is a coalition of leaders across North Carolina that realizes the important connection between our Certificate of Need laws and long-term economic development and jobs.
What is Certificate of Need?
Certificate of Need (CON) is an analytically, fact driven way to limit the unnecessary duplication of medical facilities. All new hospitals as well as many other health care facilities including ambulatory surgical facilities must first obtain a Certificate of Need (CON) before initiating development. Certificate of Need (CON) is an open system that allows for direct public involvement.
Does Certificate of Need work?
Yes, it focuses on providing access, quality, and lower costs to all North Carolinians. States that have changed Certificate of Need (CON) have seen an increase in facilities in wealthier parts of the state at the expense of access in poorer parts. Certificate of Need (CON) also helps to ensure best practice and high standards.
Are there any studies that compare Certificate of Need (CON) states vs. non-Certificate of Need (CON) states?
Yes, A study by the three American Automakers found that Certificate of Need (CON) states have lower health care costs than non-Certificate of Need (CON) states in some cases by as much as 164% lower.
Do non-Certificate of Need (CON) states have higher hospital costs?
Yes, according to the study previously cited, inpatient and outpatient hospital costs were 20% higher in non-Certificate of Need (CON) states.
Do states other than North Carolina have Certificate of Need (CON) laws?
Yes, 36 states have some form of Certificate of Need (CON). Certificate of Need (CON) laws are state specific and vary depending on the healthcare needs of each state.
Yes, 36 states have some form of Certificate of Need (CON). Certificate of Need (CON) laws are state specific and vary depending on the healthcare needs of each state.
Have other states changed their Certificate of Need (CON) laws?
Other states that have a robust planning process as part of Certificate of Need (CON) like North Carolina are continually making changes to accommodate the changing healthcare environment.
Will eliminating Certificate of Need (CON) hurt rural areas?
Yes, many of the services regulated by Certificate of Need (CON) are necessary to ensure important local medical services are available in rural areas. Eliminating the planning and approval process will lead to service providers moving to more populated areas thus having a direct negative impact on the availability of rural medical services.
Does Certificate of Need (CON) help with Economic Development?
Yes, the Certificate of Need law is a vital tool that helps keep the medical economy balanced. Some are encouraging North Carolina to change its Certificate of Need laws or even get rid of them. Such a change would have a devastating impact on health care. We recently saw a hospital file bankruptcy and another announce that they would no longer deliver babies. Just imagine what could come from major changes to our Certificate of Need laws. Obviously, health care is changing at every level and the transition continues to create economic uncertainty across the economy. Any additional strain could have dire consequences to North Carolina.
Other Posts
- Coronavirus Crisis: Straining Hospitals’ Finances
- Many of North Carolina’s business, policy and health care leaders all agree that the Certificate of Need law is critical to their communities.
- Protect CON. Protect Health Care
- As Rural Hospitals Struggle, Some Opt To Close Labor and Delivery Units
- Costs increase when Certificate of Need laws changed or eliminated
Contact
For more information contact Bill McAulay, NC Business Leaders for Health
