Certificate of Need (CON) programs, aimed at restricting healthcare facility costs and improve planning of new construction, date back to 1964, when New York became the first state to pass such legislation. Fueled by concern that over-investment by providers would raise healthcare costs, the state government was empowered to determine need for any new hospital or nursing home before it could be established. A decade later, Congress passed the Health Planning and Resources Development Act of 1974, which provided federal funds for state CON review programs, and by 1982, virtually every state had enacted some type of a CON program.
Despite decades of change in the health care system, CON laws have remained virtually untouched.
You may view the full article of this issue by clicking here.