What is Certificate of Need?

Henry Ford Hospital,
West Bloomfield, MI.
Henry-Ford-West-Bloomfield300pxHenry Ford Hospital, West Bloomfield and Providence Park Hospital and Medical Center-Novi are the first newly licensed Michigan hospitals in over a decade. RWC Advocacy worked with both to help navigate the legislative and regulatory hurdles to succeed in opening these facilities.

Although originally created as a mandate by the Federal Government in an attempt to restrain health care cost increases, Michigan’s CON program is intended to ensure access to high quality health care services while restraining costs. In Michigan, a Certificate of Need must be granted before anyone can begin operating, expand, relocate or acquire any of the following:

  • Air Ambulance (helicopter)
  • Bone Marrow Transplants
  • Cardiac Catheterization
  • Computed Tomography (CT) Scanners
  • Heart, Lung, Liver Transplants
  • Hospital Beds
  • Magnetic Resonance Imaging (MRI)
  • Megavoltage Radiation Therapy (MRT)
  • Neonatal Intensive Care Unit (NICU) and Special Care Nursing Services
  • Nursing Home/Hospital Long-Term Care Unit Beds
  • Open Heart Surgery
  • Positron Emission Tomography (PET) Scanners
  • Psychiatric Beds/Acute Inpatient
  • Surgical Services
  • Urinary Lithotriptors

In addition, if a licensed health care facility expends more than $3,160,000 (adjusted annually based on the CPI) on clinical space or equipment, a “capital expenditure threshold” CON must be obtained even if it is not related to one of the specific covered clinical services or beds.

There are Certificate of Need review standards for each of the covered services/beds which specify the rules for qualifying for a CON. Although the State tries to maintain consistency between standards, each set is unique and requirements can vary a great deal between them. However, most of them do contain criteria for initiation, expansion, relocation, replacement, and acquisition of services.

 

Melissa-CuppMelissa D. Cupp
Partner
RWC Advocacy
Email: cuppm@rwca.com
Phone: 517.374.3877
Twitter: #CONGoddess

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