Navigating the Shifting CON Landscape: Is Your Health System Ready?
Understanding the Evolving CON Landscape
As Certificate of Need (CON) laws evolve across the U.S., healthcare providers must prepare for a shifting regulatory environment that could reshape market competition, facility expansion, and capital investment strategies.
CON laws historically regulated healthcare facility development to control costs and prevent service duplication. States nationwide—including Florida, South Carolina, Tennessee, Georgia, West Virginia, Vermont, and Connecticut—have either recently changed or are actively reconsidering their CON regulations, creating new opportunities—and challenges—for healthcare organizations.
With these changes, health systems must reassess their market position, real estate strategies, and growth plans to stay competitive. The key question: Is your organization prepared?
Key Trends in CON Law Reform
States nationwide—including Florida, South Carolina, Tennessee, Georgia, West Virginia, Vermont, and Connecticut—have either recently changed or are actively reconsidering their CON regulations. Key national trends include:
- Full or partial CON repeals, opening healthcare markets to new competition.
- Increased facility expansion, particularly in high-growth regions.
- Rising real estate costs, as providers rush to secure prime locations.
- Shifts in service delivery models, with more outpatient and specialty facilities emerging.
For some healthcare organizations, these changes present exciting opportunities to grow. For others, they introduce new challenges in maintaining market share and financial sustainability.
How Healthcare Systems Can Stay Ahead
To navigate the evolving CON landscape, healthcare providers must take a proactive, strategic approach to market expansion. Here are four key strategies to ensure long-term success:
- Market Planning & Opportunity Analysis – Use demographic, economic, and competitive data to identify high-growth markets and prioritize expansion efforts.
- Real Estate Acquisition & Adaptive Controls – Secure strategic locations before competition drives up costs and explore flexible leasing or ownership options to allow for scalable growth.
- Prototype Facility Development – Leverage standardized facility designs for ambulatory care, urgent care centers, and specialty services to accelerate expansion.
- Strategic Capital Planning & Development Partnerships – Work with third-party capital providers and developers to finance growth while reducing financial risk.
Is Your Health System Ready?
The changing CON landscape demands strategic planning and decisive action. Organizations that prepare now will be best positioned to thrive in a more competitive, fast-moving healthcare market.
Download our white paper, “Certificate of Need (CON): The Evolving Landscape – Is Your Health System Prepared?“ for in-depth insights and strategies, or contact us today.