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Certificate of Need Program
State Health Planning and Development Administration

Who Needs a Certificate of Need?

A Certificate of Need (CON) is required by any person, partnership, or corporation proposing to:

  • Construct, develop, or otherwise establish a new health care facility, health care service, or home health agency.
  • Make a capital expenditure of $2 million or more in connection with a health service or health facility.
  • Make a capital expenditure of $1.3 million or more to acquire major medical equipment.
  • Acquire, through lease, rental, or donation, any facility or major medical equipment for use in a health care facility or health service.
  • Relocate beds from one facility to another.
  • Redistribute the beds of a health care facility by 10 beds or 10 percent, whichever is less, in any two-year period.
  • Offer any health service, which was not offered on a regular basis by the health care facility within the previous 12-month period.
  • Increase the number of renal dialysis stations in a facility, or move stations from one facility to another.
  • Acquire an existing health care facility by purchase, lease, or other arrangement.
  • Permanently close a health care facility or service, if closure involves a capital expenditure in any amount.

Health Maintenance Organizations (HMOs) are exempt from these requirements in many circumstances. Major medical equipment used in certain medical laboratories is also exempt. Details are available from the Project Review Branch.