5 Reasons To Hire A CON Attorney Knowledgeable in Health Law for your DC CON
1. Certificate of Need applications are complicated
DC CON applications are complicated. Depending on the type of CON application and the healthcare sector, they may require legal research and strategy, market research, demographic research, payment code determinations, project budget, profit/expense projections, etc. It is helpful to engage a CON attorney who understands healthcare regulatory law and healthcare business to assist you with strategizing and preparing your approach in the CON application.
2. Certificate of Needs DC government filing fees are expensive
Fee charged by the DC government for reviewing a CON application is 3% of the capital costs of the proposed project. Accordingly, a $2 million project will pay a CON fee of about $60,000. This fee is “at risk,” meaning that regardless of whether the CON is approved, State Health Planning and Development Agency (SHPDA) will collect the fee. The entire fee is paid before SHPDA reviews the CON application and is readjusted if the capital expenditure increases. To reduce the probabilities of the CON application rejection based on technical issues or having to refile a second application and pay the fee again due to healthcare regulatory issues, it is important to involve a CON attorney experienced in healthcare law and regulations to assist.
3. There are pre-requisite legal consideration before filing a Certificate of Need
Before even filing a CON application in DC, it is important to ensure the project is planned property to satisfy the CON requirements. For example, in a transaction involving a transfer of CON, parties must first inform the DC CON office (i.e., State Health Planning and Development Agency) before executing a sales agreement. A healthcare attorney experienced in the DC CON process can inform you of legal issues and requirements prior to filing and during the CON application process.
4. Healthcare transactions are complex and highly regulated
Establishing healthcare services, or entities or transferring ownership of an existing facility require knowledge of the complex regulatory framework of state and federal healthcare laws. The DC CON process does not address breach of regulatory issues in healthcare transactions. Therefore, if a non-compliant transaction requires restructuring after SHPDA finalizes its review of the CON application, parties may be forced to reapply and incur fees for filing a second CON application. Given the costly CON application process in DC, it is prudent to engage a CON attorney experienced in healthcare regulations to guide due diligence, negotiations, agreements, and transactions between the parties.
5. Prevent lawsuits and future liability
Business deals involving filing a DC CON can be complex and may have potential legal liabilities. A CON attorney knowledgeable in healthcare regulatory laws can help prevent lawsuits, mitigate damages and protect your rights in the CON process.
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