Michigan Certificate of Need Laws
Michigan
Restrictive
Year Enacted
—
Services Regulated
—
National Rank
27 of 51
Top Systems
- Beaumont/Corewell Health
- Henry Ford Health
- Trinity Health Michigan
Reform Status
Restrictive with no active reform bill.
Key Case
No major case law on record.
An Analysis of the State Certificate of Need Program
9 Services. One Board. Zero Competition.
- ✓Hospitals
- ✓Ambulatory Surgery Centers (ASCs)
- ✓Nursing Homes / Long-Term Care
- ✓Psychiatric Facilities
- ✓Imaging (MRI, CT, PET)
- ✓Cardiac / Open Heart Surgery
- ✓Organ Transplantation
- ✓Neonatal Care
- ✓Major Medical Equipment
The Permission Process
Michigan's CON law covers a broad range of healthcare services and facilities, requiring state approval for new projects, expansions, or equipment purchases over a certain cost.
The path to approval is a bureaucratic maze managed by the Department of Health & Human Services (MDHHS) and a governor-appointed commission.
In a landmark case, Huron Valley Hospital's 1977 CON application was denied after local planners favored an established competitor. The subsequent lawsuit alleged that the CON process was used not to manage resources, but to actively conspire against new market entrants. The courts found evidence of potential abuses, highlighting how CON laws can be weaponized to protect incumbents and stifle competition, a legal battle that underscores the system's capacity for cronyism.
3 Systems. One Market.
Insurer Dominance
- Dominant Insurer
- Our comprehensive overview of Certificate of Need laws across the United States.
$81.4B in discounted drugs. Zero disclosure requirements.
Data sourced from state agencies, Cicero Institute, and public records.
Last updated: April 2026