The New York State Department of Health recently proposed revisions to the Certificate-of-Need (CON) regulations that are intended to simplify the CON process for so-called “construction” applications. This column summarizes these changes.
Background
For decades, New York has had one of the most pervasively regulated health care delivery systems of any state. When New York became the first state to adopt a CON process in 1964, it was expected to enable the Health Department to engage in statewide and regional planning of the state’s health care infrastructure. The Health Department’s website summarizes the purposes of the CON process:
New York’s Certificate of Need (CON) process governs establishment, construction, renovation and major medical equipment acquisitions of health care facilities, such as hospitals, nursing homes, home care agencies, and diagnostic and treatment centers.
The objectives of the CON process are to promote delivery of high quality health care and ensure that services are aligned with community need. CON provides the Department of Health oversight in limiting investment in duplicate beds, services and medical equipment which, in turn, limits associated health care costs.1
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