The Evolving Healthcare Landscape: How 'Certificate of Need' Changes Increase Choices for Patients

In the final part of our three-part Business of Healthcare series, we examine how changes to 'Certificate of Need' regulations are expanding access and empowering patient choice.

The healthcare landscape in Wesley Chapel, Florida, has recently undergone a significant transformation. Today, three new healthcare facilities have opened in close proximity, providing local patients with a range of options previously unavailable.

This surge in healthcare choices reflects the evolving nature of accessibility and emphasizes the importance of patient choice in managing health needs. At KI, we are committed to navigating these complexities, ensuring our furniture solutions meet the industry’s changing demands.

To shed light on this shift, I spoke with Rachel Ebner, Business Development Manager with ARCO Murray Construction in Tampa, Florida, as part of our ongoing Business of Healthcare series. Rachel offers valuable insights into how changes in healthcare regulations affect providers and supporting businesses.

The Impact of 'Certificate of Need' Regulations

Until recently, healthcare expansion was regulated by the 'Certificate of Need' (CON) process. Rachel explained “A CON is a regulatory requirement that is put in place to require healthcare organizations to get state approval before building or expanding services. This requires organizations to prove that a community has a specific need for their services before they can even begin the process of building.” 

The intention behind this regulation was to prevent unnecessary duplication of services, ensuring new facilities were established only when there was a proven need. However, this often limited competition and concentrated resources in major cities, leaving rural areas underserved.

MyWay Lounge Seating

“As of July 1, 2021, all hospitals were removed from the CON review process,” Rachel noted about the recent change in regulation. “Hospital systems that were previously protected have seen other providers come in and plant roots.” 

This shift has allowed new providers to enter rural markets and establish facilities that cater to local populations, addressing the long-standing disparity in healthcare access between urban and rural populations.

“Back when the CON was in place, there was often a race to get approval in new communities once population metrics hit a certain capacity,” she elaborated. “There were instances where multiple providers purchased land in a community in hopes that they would be the ones granted approval first.”

The larger providers were able to retain those pieces of land, anticipating the eventual removal of the CON or the issuance of multiple CONs for the community. This shift opens the door for increased competition, promising to enhance healthcare access and quality for underserved populations.

MyWay Lounge Seating

A New Era of Healthcare Access

The emergence of freestanding emergency rooms and urgent care centers across the state exemplifies the growing power of choice in healthcare. 

“Historically, the major cities were the ones who met the requirements for a CON, leaving the rural areas at a huge disadvantage when it came to care,” Rachel explained “Now, entering rural markets with smaller facilities like freestanding emergency rooms allows providers to build a patient base and justify further expansion, all while delivering quality care closer to home.”

These facilities focus on non-life-threatening conditions, alleviating the burden on larger hospitals and improving access for patients who previously faced long travel times or extended wait periods. By addressing less critical emergencies, these centers enable hospitals to concentrate on urgent cases, enhancing overall efficiency and patient experience.

Katera Guest Chair 

Empowering Patients Through Increased Choice

These new developments signify a broader shift toward increasing healthcare choices and accessibility. Providers are expanding their reach and adapting services to meet community needs more effectively. For patients, this translates to greater control over their healthcare decisions, with more convenient and diverse options available nearby.

The expansion of healthcare facilities and the shift in regulatory policies highlight the importance of choice within the healthcare system. As new facilities emerge and care options localize, we’re committed to providing furniture solutions that empower both patients and providers. By creating supportive, functional environments tailored to their needs, we help improve care experiences and address disparities.

As the healthcare landscape continues to evolve, the theme of choice remains central to delivering better care and enhancing patient outcomes. To learn more about how to design spaces that support positive outcomes in healthcare, reach out to your dedicated KI sales specialist or contact me directly at jonathan.webb@ki.com.