Certificate of Need (CON)
Promoting responsive health facility and service development
Overview
In Alaska, if a person wants to spend $1.5 million or more to build a new health care facility, alter the number of beds at an existing facility, or add a new type of health service, they must first get authorization from the State. This permission is called a Certificate of Need (CON). The goal of the program is to prevent too many health care services from being built in one area, which can raise costs and waste resources. The CON program helps keep health care affordable.
What is a CON?
A CON is an official approval from the Department of Health allowing a person to spend $1.5 million or more to construct a health care facility, alter the bed capacity of a health care facility, or add a category of health services provided by a health care facility.
Who qualifies?
If a person wants to build, change the number of beds in, or add a new type of health care service at a health care facility—and the project costs will exceed $1.5 million—they likely will need to apply for a CON. Under Alaska law Alaska Statute (AS) 18.07.111 and 7 Alaska Admin Code (AAC) 07.900), a health care facility includes facilities that are owned or operated by a private person, the state, or local government. These include:
- Acute care hospitals
- Ambulatory surgical centers (including those defined in AS 47.32.900)
- Critical access hospitals
- Independent diagnostic testing facilities
- Intermediate care facilities
- Intermediate care facilities for individuals with intellectual disabilities or related conditions
- Kidney disease treatment centers (including freestanding dialysis units)
- Nursing facilities (also known as skilled nursing facilities)
- Psychiatric hospitals
- Residential psychiatric treatment centers
- Tuberculosis hospitals
Exceptions
- The cost expenditure threshold does not apply to nursing facilities—a person who wants to build, change the number of beds in, or add a new type of health service at nursing facility must obtain a CON regardless of whether the cost of the project exceeds the $1.5 million expenditure threshold (AS 18.07.031(b))
- A person who is lawfully operating an ambulatory surgical facility can move it to a new location in the same community and spend any amount of money to do so without needing a CON — as long as they don’t add more beds or new types of health services at the new location (AS 18.07.031(c))
- The following are not considered health care facilities under this law and do not require a CON (AS 18.07.111(8)(A-B)
- The Alaska Pioneers' Home and Alaska Veterans' Home (run by the Department of Family and Community Services)
- Private doctors' or dentists' offices, whether run by individuals or as part of a group practice
How to apply
- Download the Department’s Certificate of Need Application Packet. Ensure you use the version adopted by reference in regulation 7 AAC 07.040. You can verify that you are using the correct version by matching the date on the cover page of the application packet with the date listed in the current regulation. Both the application packet and the regulations are subject to change.
- Complete all relevant sections of the application packet, which include:
- General Applicant Information
- Summary Project Description
- Facility and Capacity Indicators
- Narrative Review Questions
- Consideration of Quality, Effectiveness, Efficiency, and Benefits of the Applicant’s Services
- Construction and Equipment Details
- Financial Data and Supporting Schedule
- Submit all of the information required by the Department's CON Application Packet to doh.con@alaska.gov, or by mail to:
- Alaska Department of Health
ATTN: Certificate of Need Program
3601 C Street, Suite 978
Anchorage, AK 99503 - Important: Please provide a copy of the submitted check with your CON application packet
- Alaska Department of Health
- Submit the required application fee. Use the Department’s CON Application Packet to help you calculate the fee. This fee is determined by a formula established in 7 AAC 07.079. Please make out your check to “Department of Health” and reference your CON project title in the subject line. Please submit the payment by mail to:
- Alaska Department of Health
ATTN: Assistant Commissioner’s Office Administrative Manager
P.O. Box 110605
Juneau, AK 99811-0605 - Important: Please provide a copy of the submitted check with your CON application packet
- Alaska Department of Health
- Agree in writing to participate in the uniform statewide reporting system, including periodic reports when required by the Department under 7 AAC 07.105. You may do this by sending written agreement to doh.con@alaska.gov
Past CON applications & decisions
Past and current Certificate of Need (CON) applications, decisions, and other documents are located on the CON Activities webpage.
This page includes a full list of CON projects, including requests for determination and supporting documents. It is updated in real time as new information becomes available.
Frequently asked questions
How do I find out if I need a CON before starting my project?
How do I find out if I need a CON before starting my project?
If you're planning to build, change, or add services to a health care facility, you can ask the Department of Health to decide whether you need a CON. This is called a Request for Determination (RFD).
When should I submit a Request for Determination (RFD)?
When should I submit a Request for Determination (RFD)?
You can submit a request if you're not sure whether:
- Your project costs will go over the dollar limit set in law.
- Your project would count as converting to a nursing home
- The work is just routine maintenance or a normal equipment replacement.
- Your facility counts as a “health care facility” under the law.
What should I include in my RFD?
What should I include in my RFD?
You’ll need to send:
- A clear and complete description of your project and everything it involves.
- A certified cost estimate for each part of the project.
- An estimated start and end date for the project.
What happens after I submit my RFD?
What happens after I submit my RFD?
The Department has twenty days to review your submitted request. If the Department needs more information, it will ask for the necessary information in writing. You will have 30 days to respond, or your request will be closed.
Once the Department has everything they need, they will send you a decision whether a CON is required within 20 days.
- If the Department decides that a CON is required, you’ll need to apply for and get a CON before starting your project. You can also ask for a reconsideration of the decision that a CON is required
- If the Department decides that a CON is not required, you may move forward with your project. However, if later your project costs go up or your plans change, you might still need to apply for a CON
How do I request technical assistance before submitting my CON application?
How do I request technical assistance before submitting my CON application?
Before you submit a CON application, you can ask the Department of Health to meet with you for a pre-application conference. This meeting is a chance to get help understanding the application process. The Department won’t help you fill out your application, but if they have helpful information, they can share it to support you as you prepare your application.
The Department is required by regulation 7 AAC 07.035 to schedule a pre-application conference if you ask for one. The Department can also choose to schedule a pre-application conference on its own, even if you don’t request it, to provide guidance and technical assistance regarding the application process.
What happens after I submit a CON application?
What happens after I submit a CON application?
Once you submit a CON application, here’s what you can expect:
- The Department checks if your application is complete
Within 30 days, the Department will tell you if your application is complete.- If anything is missing, the Department will ask for more information.
- You’ll have 60 days to send the missing details, or your application will be denied.
- A public notice is published
Once your application is complete:- The Department will publish a public notice in the newspaper and on the State of Alaska’s Online Public Notice System
- The notice will describe your project and include instructions for others to comment or apply to do a similar project in the same area (called a “concurrent review”)
- Public comment and meeting
- The public has 30 days to share comments
- A public meeting will be held 15 to 30 days after the notice is published
- This is a chance for people to ask questions or raise concerns
- Department review
The Department will:
- Review your application based on relevant laws and the Alaska CON Review Standards and Methodologies, which are adopted by reference in regulations at 7 AAC 07.025
- Important: The Alaska CON Review Standards and Methodologies gives the rules and math formulas DOH uses to determine if a new or expanded health care service is needed
- If other similar applications were received, they will be reviewed together in a “comparative review”
- The Department will write an analysis and recommendation for the Commissioner
- Review your application based on relevant laws and the Alaska CON Review Standards and Methodologies, which are adopted by reference in regulations at 7 AAC 07.025
- Commissioner makes a decision
The Department of Health’s Commissioner will make a final decision within 45 days of receiving the Department’s review.
The decision will say, as applicable:- Whether your CON is approved or denied.
- The maximum amount you are allowed to spend on the project.
- The approved capacity of other services that are expanded or added.
- A completion date for the proposed project
The decision is shared with the applicant, posted to the State of Alaska’s Online Public Notices page, published in the newspaper, and provided to anyone who asked to be notified. If your CON is denied or you disagree with the decision, you have 30 days to ask for an appeal or hearing
- Public notice of the decision
The Department will publish a public notice of the Commissioner’s decision and provide information on how to get a copy or appeal.
Important:
- Once a CON is approved, it’s only valid for the timeframe listed in the certificate.
- Approval of a CON does not guarantee funding from Medicaid or any other state, federal, or private program.
- You must complete the project as described; changes may require further approval.
Can I change my CON after my project is finished?
Can I change my CON after my project is finished?
No. Once your project is completed or the final deadline on your CON has passed, you can’t request any changes. Make sure to submit any requests before your project is done or your certificate expires.
How do I ask for more time to finish my project?
How do I ask for more time to finish my project?
If you’re still working on your project and making progress, you can request a one-time extension of up to two years.
- Your request must be in writing
- You must explain why you need more time and give a new estimated completion date
- The Department can approve the new date if you are making ongoing progress
You can only do this once. Any later date changes require a full modification request. (See "How do I request a Modification?")
When do I need to ask for a full modification of my CON?
When do I need to ask for a full modification of my CON?
You must submit a modification request if:
- You’re changing the purpose or goal of the project.
- You already used your one-time extension and still need more time.
- You’re making design changes that will raise your operating costs by $250,000 or more.
- The total cost of the project will go up more than 15% over what was originally approved.
How do I request a modification?
How do I request a modification?
You must use the CON Request for Modification form from the Department and include:
- A detailed description of each change and why it’s needed
- The estimated cost increase (if any)
- A current progress report
What happens after I submit a modification request?
What happens after I submit a modification request?
The Department will review your request and let you know in writing whether:
- No modification is needed.
- The change is small (a “minimal” change) and needs only a limited review.
- The change is big and needs a full review with a new CON application and fee.
What if my change needs only a minimal review?
What if my change needs only a minimal review?
The Department will do a limited review and give a recommendation to the Commissioner, who will then make a decision. Minimal changes are ones that:
- Do not change the services or purpose of the project, and
- Either reduce the cost or increase it by no more than 15%.
What if my change needs a full review?
What if my change needs a full review?
If the change is major, you must:
- Submit a new CON Application Packet
- Pay a new application fee
Important: While your new application is being reviewed, you can only keep working on the parts of your project that were already approved under your original CON.
Will the public be notified of my change?
Will the public be notified of my change?
Yes. The Department will publish a public notice of the Commissioner’s decision, following the usual public notice rules.
What is a Letter of Intent (LOI) and when do I need to submit one?
What is a Letter of Intent (LOI) and when do I need to submit one?
If someone has submitted a CON application and you want to apply for a similar project in the same area, you’ll need to submit a LOI to the Department of Health.
The LOI tells the Department that you’re planning to apply for a similar project. This lets the Department review your application at the same time as the original one. This is called a concurrent review.
What should a LOI include?
What should a LOI include?
Your letter must:
- Clearly describe your proposed project and everything it includes
- Include a certified estimate of how much each part of the project will cost
- List the estimated start and end dates of the project
Where do I submit my LOI?
Where do I submit my LOI?
A LOI must be submitted in writing to the Alaska Department of Health.
By email to DOH.CON@alaska.gov
or
By mail to:
Alaska Department of Health
ATTN: Certificate of Need Program
3601 C Street, Suite 978
Anchorage, AK 99503
What happens after I submit a LOI?
What happens after I submit a LOI?
After you send the LOI, you’ll have 60 days (starting from when the original application is declared complete) to submit:
- Your full Certificate of Need application
- The required application fee
- A written agreement to participate in the statewide health reporting system
Is a CON required for a health care facility to obtain licensure or certification?
Is a CON required for a health care facility to obtain licensure or certification?
No. A CON is a separate process from health care facility licensure.
- You do not need a CON to get a facility licensed or certified
- You also do not need a license or certification to apply for a CON
However, some health care projects may require both a CON and a facility license, depending on the type of service being offered.
The CON Program does not handle facility licensing or certification. For State of Alaska licensing requirements, please visit the following pages:
- Residential Licensing (HCS)
- Health Facilities Licensing & Certification (HCS)
- Behavioral Health Licensing (DBH)
The Department recommends contacting both the CON Program and the appropriate licensing program early in your planning process to avoid delays.
What if I want to appeal a CON decision?
What if I want to appeal a CON decision?
If your CON application is denied (either fully or partly), you have the right to appeal that decision.
How do I request a CON hearing?
How do I request a CON hearing?
You must send a written request for a hearing.
- It must be submitted within 30 days after the public notice of the decision is published.
- Your request must clearly explain why you are appealing the decision.
What happens after I request a CON hearing?
What happens after I request a CON hearing?
- A hearing officer will be assigned.
- The hearing will be based primarily on the information that was available when the Department made its original decision.
- You may present new evidence only if:
- It was available but not properly considered before, or
- It was unknown to both you and the Department at the time but is now available.
Who is part of the CON hearing?
Who is part of the CON hearing?
- You (the applicant)
- The Department of Health
- Any other applicants who were involved in a concurrent review (if there was one)
After the hearing, the hearing officer will make a recommendation to the Commissioner. The Commissioner can approve it, change it, send it back for more review, or reject it.
Can other people request a hearing on a CON that’s already been approved?
Can other people request a hearing on a CON that’s already been approved?
Yes. A hearing can also be requested to modify, suspend, or revoke an existing CON. This type of hearing may be requested by:
- The Department of Health
- Another CON applicant
- A member of the public who is affected by the approved project
This type of hearing must also be requested within 30 days of the public notice about the decision. It must follow legal rules for administrative hearings.
Where should CON hearing requests be submitted?
Where should CON hearing requests be submitted?
Hearing requests must be submitted in writing to the Alaska Department of Health. If you are requesting a hearing about a CON decision, your written request should be sent to the following address:
Alaska Department of Health
Office of the Commissioner
ATTN: CON HEARING REQUEST
P.O. Box 110601
Juneau, AK 99811-0601
You may also submit your request via email to DOH.CON@alaska.gov
Applicable laws
The CON Program is found in AS 18.07.
Additionally, the Department of Health has adopted regulations in the AAC implementing these statutes. The regulations applicable to the CON Program are found in 7 AAC 07.