Health Journalism Glossary

Certificate of need laws

  • Health Policy

State certificate of need (CON) laws and regulations seek to limit the building of excess capacity or overbuilding of health care facilities by requiring hospitals and health systems to demonstrate a need for any new hospital construction or to significantly modify an existing one or to expand certain services. The idea is that too much capacity leads to overuse and higher prices. Critics say CON rules lead to overregulation and decreased competition. 

Share: