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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>59668</law_id><section_number>32.1-102.3</section_number><catch_line>Demonstration of public need required; criteria for determining need</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="32.1">Health</unit><unit label="chapter" level="2" order_by="1" identifier="4">Health Care Planning</unit><unit label="article" level="3" order_by="1" identifier="1.1">Medical Care Facilities Certificate of Public Need</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> No <span class="dictionary">certificate</span> may be issued unless the <span class="dictionary">Commissioner</span> has determined that a public need for the <span class="dictionary">project</span> has been demonstrated. If it is determined that a public need exists for only a portion of a <span class="dictionary">project</span>, a <span class="dictionary">certificate</span> may be issued for that portion and any <span class="dictionary">appeal</span> may be limited to the part of the decision with which the <span class="dictionary">appellant</span> disagrees without affecting the remainder of the decision. Any decision to <span class="dictionary">issue</span> or approve the issuance of a <span class="dictionary">certificate</span> shall be consistent with the most recent applicable provisions of the <span class="dictionary">State Health Services Plan</span>; however, if the <span class="dictionary">Commissioner</span> finds, upon presentation of appropriate <span class="dictionary">evidence</span>, that the provisions of such plan are not relevant to a rural locality&#x2019;s needs, inaccurate, outdated, inadequate or otherwise inapplicable, the <span class="dictionary">Commissioner</span>, consistent with such <span class="dictionary">finding</span>, may <span class="dictionary">issue</span> or approve the issuance of a <span class="dictionary">certificate</span> and shall initiate procedures to make appropriate amendments to such plan. In cases in which a provision of the <span class="dictionary">State Health Services Plan</span> has been previously set aside by the <span class="dictionary">Commissioner</span> and relevant amendments to the Plan have not yet taken effect, the <span class="dictionary">Commissioner</span>&#x2019;s decision shall be consistent with the applicable portions of the <span class="dictionary">State Health Services Plan</span> that have not been set aside and the remaining considerations in subsection B. <a id="paragraph-218523" class="section-permalink" href="https://vacode.org/32.1-102.3/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> In determining whether a public need for a <span class="dictionary">project</span> has been demonstrated, the <span class="dictionary">Commissioner</span> shall consider: <a id="paragraph-218524" class="section-permalink" href="https://vacode.org/32.1-102.3/#B"><i class="fa fa-link"/></a></p></section>
						<section id="B1" class="indent-1"><p><span class="prefix-number">1.</span> The extent to which the proposed <span class="dictionary">project</span> will provide or increase access to health care services for people in the area to be served and the effects that the proposed <span class="dictionary">project</span> will have on access to health care services in areas having distinct and unique geographic, socioeconomic, cultural, transportation, and other barriers to access to health care; <a id="paragraph-218525" class="section-permalink" href="https://vacode.org/32.1-102.3/#B1"><i class="fa fa-link"/></a></p></section>
						<section id="B2" class="indent-1"><p><span class="prefix-number">2.</span> The extent to which the proposed <span class="dictionary">project</span> will meet the needs of people in the area to be served, as demonstrated by each of the following: (i) the level of community support for the proposed <span class="dictionary">project</span> demonstrated by people, businesses, and governmental leaders representing the area to be served; (ii) the availability of reasonable alternatives to the proposed <span class="dictionary">project</span> that would meet the needs of people in the area to be served in a less costly, more efficient, or more effective manner; (iii) any recommendation or report of the <span class="dictionary">regional health planning agency</span> regarding an <span class="dictionary">application</span> for a <span class="dictionary">certificate</span> that is required to be submitted to the <span class="dictionary">Commissioner</span> pursuant to subsection B of &#xA7; <a class="law" title="Administrative procedures" href="/32.1-102.6/">32.1-102.6</a>; (iv) any costs and benefits of the proposed <span class="dictionary">project</span>; (v) the financial accessibility of the proposed <span class="dictionary">project</span> to people in the area to be served, including <span class="dictionary">indigent</span> people; and (vi) at the discretion of the <span class="dictionary">Commissioner</span>, any other factors as may be relevant to the determination of public need for a proposed <span class="dictionary">project</span>; <a id="paragraph-218526" class="section-permalink" href="https://vacode.org/32.1-102.3/#B2"><i class="fa fa-link"/></a></p></section>
						<section id="B3" class="indent-1"><p><span class="prefix-number">3.</span> The extent to which the proposed <span class="dictionary">project</span> is consistent with the <span class="dictionary">State Health Services Plan</span>; <a id="paragraph-218527" class="section-permalink" href="https://vacode.org/32.1-102.3/#B3"><i class="fa fa-link"/></a></p></section>
						<section id="B4" class="indent-1"><p><span class="prefix-number">4.</span> The extent to which the proposed <span class="dictionary">project</span> fosters institutional competition that benefits the area to be served while improving access to essential health care services for all people in the area to be served; <a id="paragraph-218528" class="section-permalink" href="https://vacode.org/32.1-102.3/#B4"><i class="fa fa-link"/></a></p></section>
						<section id="B5" class="indent-1"><p><span class="prefix-number">5.</span> The relationship of the proposed <span class="dictionary">project</span> to the existing health care system of the area to be served, including the utilization and efficiency of existing services or facilities; <a id="paragraph-218529" class="section-permalink" href="https://vacode.org/32.1-102.3/#B5"><i class="fa fa-link"/></a></p></section>
						<section id="B6" class="indent-1"><p><span class="prefix-number">6.</span> The feasibility of the proposed <span class="dictionary">project</span>, including the financial benefits of the proposed <span class="dictionary">project</span> to the applicant, the cost of construction, the availability of financial and human resources, and the cost of capital; <a id="paragraph-218530" class="section-permalink" href="https://vacode.org/32.1-102.3/#B6"><i class="fa fa-link"/></a></p></section>
						<section id="B7" class="indent-1"><p><span class="prefix-number">7.</span> The extent to which the proposed <span class="dictionary">project</span> provides improvements or innovations in the financing and delivery of health care services, as demonstrated by (i) the introduction of new technology that promotes quality, cost effectiveness, or both in the delivery of health care services; (ii) the potential for provision of health care services on an outpatient basis; (iii) any cooperative efforts to meet regional health care needs; and (iv) at the discretion of the <span class="dictionary">Commissioner</span>, any other factors as may be appropriate; and <a id="paragraph-218531" class="section-permalink" href="https://vacode.org/32.1-102.3/#B7"><i class="fa fa-link"/></a></p></section>
						<section id="B8" class="indent-1"><p><span class="prefix-number">8.</span> In the case of a <span class="dictionary">project</span> proposed by or affecting a teaching hospital associated with a public institution of higher education or a medical school in the area to be served, (i) the unique research, training, and clinical mission of the teaching hospital or medical school and (ii) any contribution the teaching hospital or medical school may provide in the delivery, innovation, and improvement of health care services for citizens of the Commonwealth, including <span class="dictionary">indigent</span> or underserved populations. <a id="paragraph-218532" class="section-permalink" href="https://vacode.org/32.1-102.3/#B8"><i class="fa fa-link"/></a></p></section></text><history>1982, c. 388; 1984, c. 740; 1993, c. 704; 1999, c. 926; 2000, c. 931; 2004, cc. 71, 95; 2008, c. 292; 2009, c. 175; 2020, cc. 227, 558, 1271.</history><metadata></metadata></law>
