April 22, 2021

Health Care: Certificates of Need

It's easier to greenlight hospitals, but new building lags

Mike Vogel | 3/29/2021

Florida removed a regulatory dam known as a certificate of need that blocked new hospitals. So far, it’s produced only a trickle of new building. Pasco County, which grew twice as fast as Florida overall between 2000-10, drew plenty of interest from expansion-minded businesses: Retailers, fast-food chains — and hospitals. BayCare Health System, the regional non-profit, purchased a site in Wesley Chapel in Pasco to build a hospital among the growing rooftops.

Unfortunately for BayCare, it had to face off against Altamonte Springs-based AdventHealth, which also wanted a hospital there. At the time, companies seeking to build hospitals or add hospital beds had to get approval from the state under what was called the certificate of need program.

Enacted in 1973, Florida’s certificate of need required providers — ranging from home health care agencies to hospitals — to demonstrate that a new facility or service wouldn’t cannibalize existing players’ businesses.

This story also features expert opinions, business briefs and people in the news: John Couris; Liz Dudek; Kevin DiLallo; Tony Inzina

 

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Tags: Healthcare, Feature

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