Planning and applying for a Certificate of Need (“CON”) from the state is a crucial part of the healthcare project development process. Submitting a CON requires a significant commitment of resources – i.e., time and money - without which a CON will not be obtained. Professional experience, guidance and strategy are vital to the application process and will protect your investment in your project.
Management Performance Associates offers Feasibility and Readiness Services, Application Services, and Post-Approval Services to improve the feasibility of your hospital, long-term care, equipment, or other healthcare project requiring a CON:
CON Feasibility and Readiness Services
Management Performance Associates can help you evaluate the feasibility of your project in each of these areas, advance your plans to a higher level of feasibility, and assess whether you are prepared to proceed with the CON process. Before the application process can begin, potential applicants need to have the following planning deliverables and analyses. Management Performance Associates can help you improve your stance in each of these areas:
- Building analysis/evaluation of project alternatives
- Analysis of project alternatives (such as renovation, replacement, expansion, and new construction), including estimated project costs and financial feasibility of each alternative
- Market assessments and demand analyses
- A market study that addresses the specific geographical service area, emerging trends in service delivery, type and number of beds and services to be provided, market demand, impact on other facilities, and trends in population, occupancy, payers, and reimbursement
- Financial analysis
- Projected statement of sources and uses of funds
- Development of a capital cash flow model, with assumptions, to establish project feasibility
- Availability and source of funds/financing; ability to document funding/financing
- Determination of whether the owner has the resources to finance the pre-CON development aspects of the project
- Site control
- Legal documentation (deed; option to purchase; etc.)
- Zoning approval, if needed
- Organization and direction of architectural planning
- Design team familiar with State licensing requirements and experienced working with the particular CON Committee or procedure involved
- Site analysis by the design team to determine compatibility with the space program and regulatory requirements
- Architectural pre-design programming sufficiently detailed to document the square footage and estimate project costs accurately
- Organization and direction of project management focusing on the following considerations:
- Will a construction manager or general contractor be used?
- Have contracts been negotiated that are fair to the owner?
- Was the AIA form of contract used and amended?
- Is the owner at risk for the subcontractors or are subcontracts the responsibility of general contractor or construction manager?
- Will the general contractor and/or construction manager be able to self-perform any work?
- Establishment of legal entities
- The legal organization (owner, operator), must be determined, and, if new entities are needed, created with the Secretary of State
CON Application Services
Management Performance Associates offers assistance with preparing a CON application that complies with the regulatory requirements of your state. Members of the Management Performance Associates management team have helped clients prepare for and secure dozens of CONs.
Post-CON Approval Services
- Assistance with post-CON follow-up (status reports; extension requests; cost over-run requests; obligation letters; etc.)
- Assistance with applications for licensure and enrollment
- Assistance with developing and implementing policies, procedures, organizational development, and documentation needed to pass licensing surveys and inspections
- Construction project management services
- Management and compliance program services for operating facilities
For more information on MPA's Certificate of Need Services, please contact Margaret Scavotto, General Counsel and Compliance Manager at Management Performance Associates, at mcs@healthcareperformance.com, or 314-434-4227 extension 16. |
