Certificate of Need (CON)

Policy Reference: https://www.michigan.gov/mdhhs/0,5885,7-339-71551_2945_5106---,00.html

The Issue

Certificate of Need (CON) is a state regulatory program enacted in 1972 and administered by the Department of Health and Human Services. The intended purpose of the CON process is to balance cost, quality and access issues, and to ensure that only needed services and facilities are developed in Michigan.  

When entities such as a health facility, hospital physician, group practice, etc., propose new capital expenditure projects (construction or renovation) or projects that would increase bed capacity or relocate a service or facility, a CON is required. 

The review standards used by the Department regulate and evaluate projects from covered health facilities are developed by the gubernatorial appointed Certificate of Need Commission.

The Impact

Michigan’s CON program maintains access to cost effective, high-quality care for all of Michigan's residents while restraining the proliferation of unnecessary facilities and services.

Our Position

  • Support CON policy that recognizes and preserves access to a full continuum of high-quality, evidence-based, and cost-effective healthcare services for all of Michigan's residents;
  • Support a fair and open process to amend CON standards when appropriate to reflect current standards of care and technological advancements;
  • Advocate working within the Commission's process to amend the CON standards rather than pursuing legislative determinations for individual healthcare projects or services regulated by the CON program;
  • Support preservation of the CON program.