How CON Benefits Michigan


CON Helps Constrain Health Costs

  • CON helps Michigan avoid unnecessary duplication and fosters cost-effective practice for various services. Most health cost studies indicate that unneeded facilities, equipment, and services are major causes of health cost escalation.
  • Lower per capita health costs in CON states vs. non-CON states: For groups of similar populations and benefit plans, per-capita health costs for particular CON-covered services are lower in states with CON — and higher in states without CON.
  • CON repeal in other states led to quick proliferation of duplicative and expensive medical facilities, equipment and services. Result: quicker escalation of costs, but little gain in quality.

CON Promotes Higher Quality

  • Proliferation of certain advanced medical services, at lower average volumes, causes dilution of proficiency of physicians and other involved health professionals.
  • Better outcomes: Most research shows correlation of quality with higher volume.
  • Commission updates CON standards (sometimes more often that the statutory minimum of at least once every three years) to reflect advances in medical practices.

CON Promotes Needed Patient Access to Key Services

  • CON assures availability of certain advanced medical services by lower minimum volume requirements in rural and less populated regions when that does not harm quality of care.
  • No effective CON programs in other states led to rural/central city areas no longer having adequate hospitals for general, emergency and indigent care. States without CON experience proliferation of surgery and imaging centers, particularly in high-income areas. These centers don’t provide same extent of emergency and indigent services.  Hospitals left with complex and/or indigent cases, which threatens their continued existence, especially if they many low income patients.

For data and research specific to Michigan: