Certificate of Need (CON) is a state regulatory program intended to balance cost, quality and access issues and to ensure that only needed services and facilities are developed in Michigan. An entity (health facility, physician, group practice, etc.) proposing any of the following types of projects must obtain a CON, regardless of the capital expenditure proposed:

  • Increase in the number of licensed beds or the relocation of licensed beds from one site to another
  • Acquisition of an existing health facility or operation of new health facilities
  • Initiation, replacement or expansion of covered clinical services
  • Short-term nursing care program (swing beds)
  • Any capital expenditure projects (construction, renovation, etc.) that involve a health facility

The capital expenditure threshold is indexed annually by the Michigan Department of Health and Human Services, based on the consumer price index. For information about the current expenditure threshold, contact the department at (517) 241-3344.

Determinations of whether a project requires CON approval, whether a project complies with applicable requirements, or whether other requirements apply must be obtained in writing from the Department of Health and Human Services.

Additional information about the state of Michigan’s Certificate of Need program may be obtained online.

MHA Position Statement on Certificate of Need

(Adopted by the MHA Board of Trustees April 8, 2015)

The Michigan Health & Hospital Association supports the Certificate of Need program as a means of maintaining access to cost effective, high-quality care for all of Michigan's residents while restraining the proliferation of unnecessary facilities and services.

In furtherance of this position, the association shall:

  • Support CON policy that recognizes and preserves access to a full continuum of high-quality, evidence-based, and cost-effective healthcare services for all of Michigan's residents;
  • Support a fair and open process to amend CON standards when appropriate to reflect current standards of care and technological advancements;
  • Advocate working within the Commission's process to amend the CON standards rather than pursuing legislative determinations for individual healthcare projects or services regulated by the CON program;
  • Within the CON Commission process, when instances of member conflict regarding any given CON standard or proposed regulation arise, the association shall remain neutral but shall advocate for a fair and open process; 
  • In instances of member conflict arising from a member's pursuit of CON legislation, the association shall engage in advocacy consistent with the principles outlined in this Position Statement but will not advocate against a member;
  • The association shall support preservation of the CON program.

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