certificate of need


certificate of need

 (CON) a document issued by a health systems agency or local health planning agency, giving formal permission for construction and modification of health agencies, major equipment expenditures, or new health services. An institution or individual health care provider can apply for such a certificate.

certificate of need

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CON

A declaration from a government planning agency indicating that the construction or alteration of an existing health facility is justified. Designed initially in the 1970s to prevent the construction of duplicate health care facilities in local or regional markets, some analysts have suggested that CONs have instead defended existing hospitals from unwanted competition.