How long do Certificate of Need approvals add to healthcare development timelines?
How long do Certificate of Need approvals add to healthcare development timelines? In most states, Certificate of Need (CON) approvals add 3–12 months to a healthcare project, and 12–24 months if the application is challenged or appealed; plan for 90–120 days of pre-filing preparation plus the state’s review and potential hearing schedule. Why it matters Timeline is critical. A 40,000 SF ambulatory surgery center projected to generate $2.0–$3.0 million in annual EBITDA forfeits roughly $165,000–$250,000 for every month opening is delayed. Meanwhile, construction inflation of 4–6% annually (0.3–0.5% per month) and interest carry on predevelopment spend compound the cost of waiting. CON delays also disrupt strategic sequencing. Missing a market window can cede first-mover advantage to a competitor, force physicians to extend expiring leases, and push projects into tighter labor or materials markets that increase total project cost by 5–10%. How it works Most CON processes follow a predictable path: pre-application planning (60–120 days), submission, completeness review (2–4 weeks), staff review (60–120 days), public comment/hearing (as scheduled), decision (within 30 days of hearing), and potential appeal (3–12 months). Batch cycles in some [...]
