What is Certificate of Need (CON)?

• A. Certificate of Need; a regulatory process that requires state approval before expanding services.
• B. A statement of an organization's purpose and primary objectives.
• C. The processes involved in billing for healthcare services and receiving payments.
• D. A standardized claim form used by hospitals to bill for inpatient and outpatient services.

Answer: (A)

Certificate of Need is a state-regulated process in which a healthcare provider must obtain state approval before making certain capital expenditures or expanding services, such as building a new hospital, adding beds, or purchasing expensive equipment. The goal is to ensure that proposed expansions meet actual community needs, improve access to care, and contain costs by avoiding unnecessary duplication of services. Reviews typically consider factors like population demand, potential impact on access, financial feasibility, and effects on competition. This is a regulatory mechanism tied to planning and resource control, not a mission statement, a billing process, or a standard claim form.