Certificate of Need (CON) Program
Certificate of need (CON) is a statutory document basically required in most of the states and federal jurisdictions before acquiring, expanding or creating a facility is allowed. These certificates are issued by state regulatory or by a federal giving authority in an area to stress and affirm the importance of the plan in the community. One of the fields where this concept of a Certificate of Need arose was in healthcare which was first passed in New York in 1964 then federal law followed during the administration of Richard Nixon in 1972 ( Bailey, 2018) . Certificates of Need are crucial in medical facilities construction in the states which are issued by health care agencies.
The Certificate of Need in Healthcare Financial Management
A sequence of reasons spurred states to demand CONs in healthcare industries. One of the chief concerns is the increase of hospital capacity and excess construction of healthcare which would, in turn, lead to competitors in a densely populated field in coverage of patient cost and convincing patients to admit hospitalization unnecessarily. In addition, there is an optimal allocation of limited resources which are needed for expansion. Secondly, it helps to get necessary regulatory approvals. This is from municipal or state officials hence there is no worry or risk of financial loss through lawsuits ( Bailey, 2018) . In addition, it helps in getting consultancy and financial expertise from consulting firms. This aids in external financial advice and feasibility studies before the commencement of new or expansion of facilities. Lastly, there is the need for budget review. It most focuses whether the money allocated for new medical facilities where prudently distributed to detect instances of allocation and under budgeting.
Delegate your assignment to our experts and they will do the rest.
Florida’s Certificate of Need Processes
Florida is one of the States that lies on the certificate of Need (CON) to monitor the enlargement and innovation of health facilities in order to reduce the cost of healthcare services ( Stratmann & Russ, 2014) . In Florida, CON requires the medical service providers to acquire approvals from the State before any new establishment or expansion of existing services. CON governs only specified medical care providers which include hospitals, hospice, nursing homes, and skilled nursing units. Its main objective is to govern services, new facilities and construction, new hospital specialization such as trauma services, and monitoring the number of patients in hospitals. Florida was registered to CON processes in 1973 and it was harmonized to a greater extent during the 2004 and 2008 legislative session ( Stratmann & Russ, 2014) . The revised CON focused on basing the process on need issues and accessing hospital services removed financial viability and cost reduction criteria. Currently, CON does not regulate all the hospitals in Florida and advocates the establishment of new hospital facilities.
How CON Regulations Affect Staffing
First, they have an effect on the quality of the human resource in health facilities. Manpower of high caliber is required to expand and get a CON. Secondly, they tend to encourage career development ( Needleman, 2015) . When facilities expanded, subordinate staff are elevated to senior positions in the new facilities. Third, they help standardize health industry by insisting on fixed thresholds and irreducible minimums for expansion. To get a CON, an establishment must meet certain thresholds. Fourth, CON creates new job opportunities for new staff who are required to man the new facilities. Fifth, it forces conformity with the stipulated staff hiring procedures as any breach of such code may jeopardize future approvals ( Needleman, 2015) . Sixth, it enhances the supervisory role that the state officials have on the hospital rights in case of industrial disputes in the expanded facilities. Lastly, it serves to ensure that the expanded facility is feasible thus promoting job security for the newly hired staff who in the absence of protection mechanism can be retrenched.
References
Bailey, J. (2018). The Effect of Certificate of Need Laws on All ‐ Cause Mortality. Health services research , 53 (1), 49-62.
Needleman, J. (2015). Nurse staffing: the knowns and unknowns. Nurs Econ , 33 (1), 5-7.
Stratmann, T., & Russ, J. (2014). Do Certificate-of-Need Laws Increase Indigent Care? (No. 14-20). Working paper.
