The certificate of need program is designed to prevent unnecessary duplication of expensive medical services and equipment. In some states the certificate of need process is a two-step process that consists of a Letter of Intent and the Certificate of Need Application. The required elements of such a letter of intent will most likely vary somewhat from state to state.
Texas Letter of Intent in Connection with Obtaining a Certificate of Need for a New Health Care Facility or Major Capital Expenditure in the Health Care Industry
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How to fill out Letter Of Intent In Connection With Obtaining A Certificate Of Need For A New Health Care Facility Or Major Capital Expenditure In The Health Care Industry?
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FAQ
Minnesota has ambulance CON requirements and caps on services and facilities. Eleven states have no CON laws or caps: California, Colorado, Idaho, Kansas, New Hampshire, North Dakota, Pennsylvania, South Dakota, Texas, Utah, and Wyoming (see the accompanying chart).
Capital Expenditures ? large, pre-paid expenses that depreciate over time. Among others, buildings, technology infrastructure, land, equipment, and new medical devices are classified as capital expenditures for healthcare practices.
The cons of CON laws Vary from state to state, which can result in inconsistencies in management. Allow room for political sway and subjectivity to inadvertently influence decisions regarding which facilities will be built. Aren't well-suited to objectively identify the ?best interests? of a community.
Which of the following represents a capital expenditure? Capital expenditures are major investments in long-term assets such as land, buildings, and equipment; or, intangible assets such as patents.
Capital expenditures are long-term investments, meaning the assets purchased have a useful life of one year or more. Types of capital expenditures can include purchases of property, equipment, land, computers, furniture, and software.
Qualifying capital expenditure means capital expenditure of such a nature as to rank as qualifying expenditure for the purposes of the Second Schedule to the principal Act; Sample 1.
Effective capital expenditure is defined as the sum of capital expenditure and grants for creation of capital assets.
A primary objective of state CON laws is to control health care costs by avoiding unnecessary expansion or duplicative services within an area.