The role of certificate of need legislation: a survey

The Certificate of Need (CON) process was created primarily as a cost containment mechanism to prevent duplication of health care facilities and equipment. The intent of CON programs was to deter new health services programs while protecting existing programs and, to some extent, counterbalance market-place principles. Obtaining a Certificate of Need is expensive and time-consuming, and thus remains a relevant issue today. Maintaining a regulated environment may have some spill over benefits in terms of stability and quality. To examine this topic, in the summer of 2000, a small-scale survey was designed and administered to ascertain the views of hospital administrators on the CON process in Maryland. Despite some limitations of the survey specific to the size of the representative sample and mix in respondents, several conclusions can be drawn.