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Certificate of Need

What is Certificate of Need

In an effort to control the rapidly escalating costs of health care through planning and regulation, most states, including Oregon, have Certificate of Need ("CN") programs. As the name implies, the purpose of these programs is to evaluate whether a proposed service or facility is actually needed. They are designed to discourage unnecessary investment in unneeded facilities and services. Oregon’s CN program was instituted 1971 and arose out of the legislature's desire to achieve reasonable access to quality health care at a reasonable cost.

What is subject to CN review in Oregon

ORS 442.315(1) directs that: "Any new hospital or new skilled nursing or intermediate care service or facility not excluded pursuant to ORS 441.065 shall obtain a certificate of need from the Health Services prior to an offering or development." ORS 441.065 addresses the exemption of certain religious institutions. For a definition of the terms "new hospital" and "new skilled nursing or intermediate care service or facility", see ORS 442.015. Oregon Administrative Rule Chapter 333, Division 550 of the CN administrative rules explains in detail what types of projects are subject to CN review.

CN Updates: Applications under review, decisions and CN Update Archive