Before one can establish a hospital or a health care facility, one must strictly acquire a Certificate of Need (CON) from the Department of Health.
Administrative Order 2006-00o4, containing the “Guidelines for the Issuance of Certificate of Need to Establish a New Hospital” was issued on March 2006 to “address the maldistribution of hospital beds resulting in inaccessibility and inadequacy of the hospital delivery system in most regions of the country since most hospital beds are clustered in the urban areas.” Under the order, Certificate of Need (CON) must be secured before a new hospital can be constructed.
There are changes and amendments from 2006 to present (2017).
The 2013 amendments (ao2006-0004) stipulate the following:
- The requirement for a Certificate of Need (CON) shall only apply to proposed new government general hospitals.
- Private individuals or corporations who shall establish new hospitals shall no longer be required to secure a Certificate of Need.
- Proposed new private general hospitals should have at least one hundred (100) hospital beds.
- Proposed new private general hospitals will less than one hundred (100) beds shall apply for CON.