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Certificate of Need (CON)

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.

Recently, the Senate Health Policy Committee, Chaired by Senator Curt VanderWall (R-Ludington) held a series of hearings on a set of bills that would make significant changes to Michigan’s Certificate of Need program.  Included in this package are bills that would:

  • Add two additional members to the CON Commission

  • Remove a CON requirement for covered capital expenditures

  • Remove a CON requirement for Air Ambulance services

  • Remove a CON requirement for Critical Access Hospitals

  • Remove a CON requirement for Psychiatric Beds

  • Remove a CON requirement for Outpatient Cardiac Catheterization services

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

Munson Healthcare maintains our support for the Certificate of Need program and while we support some reforms, including changes to the commission makeup and removing a CON requirement for capital expenditures, we have significant concerns over several of these bills including removing cardiac catheterization and psychiatric beds from needing to be approved by the CON Commission.

You can watch Cheryl Wieber, Executive Director of Munson Healthcare's Heart and Vascular Services testify in opposition to the cardiac catheterization CON legislation before the Senate Health Policy Committee here