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Certificate of Need

Benefits of CON Process: How it Protects You

Several studies, including one done by all three major U.S. automakers, have shown lower health care costs in states that have CON programs than in ones that don't.

  • Adjusted health care expenditures per employee were nearly one-third less in states with CON programs.
  • Inpatient and outpatient costs were nearly 20% less. Other services were also less expensive.  
  • MRI services cost 11-20% more in states that do not have CON programs.
  • Coronary artery bypass grafts cost 20-39% more in states that do not have a CON review process.

Consequences of Eliminating Public Oversight

Several other states that have eliminated their CON process have learned the hard way that a lack of public oversight can:

  • Splinter the provider delivery network which causes staffing shortages; this, in turn, lowers quality and fragments the healthcare support system
  • Threaten “safety net facilities” like trauma centers and medical education hospitals
  • Create high-profit niche markets such as specialty “boutique” hospitals and outpatient service centers for diagnostic imaging, ambulatory surgery and radiation therapy
  • Increase demand for medical services. In healthcare, supply drives demand. Areas with more hospitals and doctors spend more on healthcare services per person.

For questions regarding the Certificate of Need process and program, please contact us at (803) 545-4200.

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