Certificate of Need

NEW ITEM:  September 1, 2009

The document linked below provides guidance for the standard items that are generally required to be included in a Non-Applicability request for diagnostic equipment in a freestanding diagnostic facility or a physician’s office.   This document is to be used as guidance only, additional information may be requested as determined by the Department. Submission of the posted elements does not guarantee approval, and the posted template is not to be used for the acquisition of diagnostic equipment in a hospital setting.  Please contact Sallie Harrell at (803) 545-4200 with any questions regarding Non-Applicability requests.

 

Progress Report and Final Completion Report Reminder

It has come to our attention that some facilities are failing to submit monthly progress reports as required. This of great concern to the Department since reminder letters are no longer being sent. Note that failure to submit monthly progress reports may impact the Department’s decision to grant extensions if substantial progress cannot be demonstrated. Also, resulting action may include the voidance of an issued CON, monetary penalties, or this could affect decisions on pending projects. Click here for follow-up report procedures. See follow up Please ensure that monthly progress reports are submitted in a timely manner and include the items outlined in R.61-15 Section 607.2.

In addition, while the backlog of delinquent final completion reports has been greatly reduced, we still have projects from as far back as 2005 that have not been fully implemented. If you have any outstanding projects, please ensure the final completion report is submitted in accordance with R. 61-15 Section 607.3.

Do not hesitate to contact the CON staff at (803) 545-4200 if you have any questions.

The Certificate of Need (CON) Program is designed to promote cost containment, prevent unnecessary duplication of health care facilities and services, guide the establishment of health facilities and services which best serve public needs and ensure that high quality health services are provided.

A CON is required prior to expanding the type or scope of health services or undertaking any new health service. Application materials are available from the Bureau of Health Facilities and Services Development, S.C. DHEC, 2600 Bull Street, Columbia, S.C. 29201. DHEC may not issue a CON unless the application complies with the project review criteria and the current South Carolina Health Plan. The regulations governing the CON process may be found in Regulation 61-15 Certification of Need for Health Facilities and Services (pdf). The State Health Plan outlines the need for medical facilities and services in the state.

A CON is required for:

  • the construction or establishment of a new health care facility;
  • the addition of one or more beds or change in the licensure of one or more beds;
  • certain capital expenditures;
  • the offering of certain health services;
  • the acquisition of medical equipment; and
  • the acquisition or change in ownership or controlling interest of a health care facility.

Certificate of Public Advantage

The Certificate of Public Advantage allows for cooperative agreements among hospitals, health care purchasers and other health care providers. It is intended to foster improvements in the quality of health care, moderate cost increases, improve access to needed services in rural areas and enhance the likelihood that rural hospitals can remain open.

A Certificate of Public Advantage (COPA) means the formal approval by the Department, including any conditions or modifications, of a contract, business or financial arrangement or other activities or practices between two or more health providers, health provider networks or health care purchasers that might be otherwise be construed to be violations of state or federal antitrust laws. This is a voluntary program, but the issuance of a COPA is intended to shield the activity from antitrust challenges. Applicants must show that the benefits outweigh the disadvantages caused by their potential adverse effects on competition.

Bureau of Health Facilities and Services Development
SC DHEC
2600 Bull Street
Columbia, S.C. 29201

Frequently Asked Questions

For questions regarding the Certificate of Need process and program please contact Christopher Ward at 803-545-4200.

OR

For questions regarding the Exemption and Non-Applicability Determinations please contact Sallie Harrell at 803-545-4200.

What projects are exempt from Certificate of Need review?
Non-medical projects, such as refinancing existing debt, roof replacement, parking garages, computer systems, etc.; the upgrading of facilities which do not involve additional square feet or additional health services; replacements of like equipment with similar capabilities; facilities owned and operated by the federal government; federal facilities operated by the state; educational and penal institutional infirmaries for the exclusive use of their population; and facilities owned and operated by the S.C. Department of Mental Health and the S.C. Department of Disabilities and Special Needs except for the addition of total beds.

What is currently under review?
The Notification of Filing and Affected Persons is published the fourth (4th) Friday of every month within the South Carolina State Register. Below you may view the links to the  Notification as posted in the past three (3) months.

Pending/Recently Approved Exemptions and Non-Applicabilities (xls)

In addition, through subscription, the Department publishes the Certificate of Need Update. The Update is mailed monthly and includes expanded project information such as;

            Facility Name
            Address
            Contact Person
            Contact Phone #
            DHEC Reviewer
            Full Project Description
            Total Project Cost
            Application Status within the Review Process
            Nonapplicability Determinations
            Exemption Determinations
            Appeal Status
            Notifications and Board Agenda Items

The subscription fee for the Certificate of Need Update is $180/year.  If you wish to receive copies of this monthly publication, click on the link below, please type or print all information and mail to the address provided.

            Certificate of Need Update Application Form (pdf)

How long is a Certificate of Need valid?
A CON is valid for six months from the date of issuance except for construction, replacement, major renovations or additions to an acute care hospital, in which case a CON is valid for one year. Extensions may be granted by DHEC if substantial progress can be documented.

Can ownerships of a Certificate of Need be transferred?
A CON is valid only for the project described in the application. A CON is nontransferable and a change in controlling interest or majority ownership of the entity holding the CON results in the voidance of a CON.