A certificate issued by a governmental body to an individual or organization proposing to construct or modify a health facility, or offer a new or different health service, which recognizes that such facility or service when available will be needed by those for whom it is intended, Where a certificate is required (for instance for all proposals which will involve more than a minimum capital investment or change bed capacity), it is a condition of licensure of the facility or service, and is intended to control expansion of facilities and services in the public interest by preventing excessive or duplicative development of facilities and services. An example of capital expenditure review, certificate of need for construction of new hospitals is a requirement of law in 23 States are required to have the State health planning and development agency (designated pursuant to the law) administer a State certificate of need program, which must apply to all new institutional health service proposed to be offered or developed in the State. The health systems agencies (local planning bodies under P.L. 93-641) are required to make recommendations to the State agencies regarding proposed new institutional health service within their areas.
A certificate, issued by a governmental or planning agency, which approves the hospital’s contention that it needs a given facility or service (for example, open heart surgery). A certificate of need is required under many regulatory situations in order to obtain approval to build, purchase, or institute the service in question.
Also known as a certificate of necessity, a written statement issued by a government agency affirming that the proposed construction or modification of a health care facility will be needed at the time of its completion. A certificate of need is given to the group or person seeking to construct or modify the facility. The intention of this measure is to help contain medical costs.