Certificates of need are required by some states to justify hospitals'capital expenditures and avoid duplicative and excess capacity.

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Certificates of Need (CON) are regulatory tools used by some states that require hospitals and other healthcare providers to obtain state approval before making significant capital expenditures, such as expanding facilities or purchasing major equipment, to ensure that the new services are needed in the community and to avoid unnecessary duplication of services which can drive up healthcare costs.

Certificates of Need Are Required by Some States to Justify