Certificate of Need in the District of Columbia
What is a DC Certificate of Need (CON)?
In 1977, District of Columbia implemented Certificate of Need (CON) laws to control cost and accessibility of healthcare in DC. State Health and Planning Development Agency of the DC government is in charge of administration, examination and grant of CON requests. A Certificate of Need allows health care providers to establish new facilities or services, make certain capital expenditures, or take certain other actions under the DC CON rules and regulations.
Who Needs a CON in DC?
A Certificate of Need is required by any person, partnership, or corporation proposing to:
· Create a new health care facility, health care service, or home health agency.
· Make a capital expenditure of $6 million or more in connection with a hospital.
· Make a capital expenditure of $3.5 million in connection with a health service or health facility or hospital.
· Make a capital expenditure of $2 million by a health care facility to acquire major medical equipment.
· A single piece of diagnostic or therapeutic equipment which is acquired by lease, purchase, donation, or other comparable arrangement by or on behalf of a physician or group of physicians, or an independent owner or operator of the equipment, and for which the cost or value is in excess of $350,000.
· 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 or major medical equipment by purchase, lease, or other arrangement.
· Change ownership by transferring 10 or more percent of ownership.
When to apply for a CON?
SHPDA must review and authorize any contractual relationship which would require submission of a CON application before any agreements are executed. See, How to Apply for a DC Certificate of Need.
What are the steps in the DC CON life cycle?
The CON process includes the following phases:
· Letter of intent submission to SHPDA
· Publishing a Public Notice to inform about the healthcare entity or expenditures
· Waiting Period for Opposition
· Pre-Application Conference to review the CON application and set timelines
· Application Submission
· Completeness Review
· SHPDA Staff Review
· Public Hearing During Review to hear opposition.
· Statewide Health Coordinating Council (SHCC) Project Review Committee Consideration
· Closure of the Review Period
· The SHPDA Director’s Consideration and Action
How long is the DC CON life cycle?
For CON applications filed for a new service or entity, the DC CON process may take up to six months.
For CON applications filed for change of ownership or capital expenditure, the review period may take shorter, such as 3 to 4 months.
