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Changes to Michigan Certificate of Need Review Fees – Immediate Effect

October 18, 2013

The State of Michigan has revised certificate of need (CON) application fees pursuant to 2013 Public Act 137 (PA 137) effective October 15, 2013. Fees for CON applications consist of a base fee of $3,000 for any CON application, plus an additional fee that is indexed to the proposed CON capital expenditure involved. The total new fee amounts are listed below:

Total Project Cost

Old Fee Amount

**New Fee Amount

Up to $500,000

$1,500

$3,000

More than $500,000 but less than $4,000,000

$5,500

$8,000

$4,000,000 or more but less than $10,000,000

$8,500

$11,000

$10,000,000 or more

$8,500

$15,000

            **For online payment, the DCH CON e-Serve will still display the old fee amount so an applicant will need to manually revise the amount listed to the new fee listed above until the Michigan Department of Community Health (MDCH) updates the online application system and other relevant forms

Importantly, failure to pay the applicable CON application fee on or after October 15, 2013 may result in a determination by MDCH that a CON application is not properly filed, which may have timing implications or preclude an applicant from qualifying for a comparative review batch date.  

PA 137 also imposes new CON fees not allowed previously under the Public Health Code including:

  • A fee of $500 per CON letter of intent requesting or resulting in waiver of CON review.
  • A fee of $500 for any CON amendment request.
  • A supplemental fee of $3,000, in addition to the applicable CON application fee, for any “designated complex project.” Although “designated complex project” is not defined expressly by statute, PA 137 indicates that this category includes (but is not limited to) applications subject to comparative review and any consolidated CON application for acquisition of a health facility plus all of its covered clinical services.
  • A fee of $1,000 for expedited processing of a CON application at the request of the applicant. It is unclear whether expedited processing will be granted for every request and expedited processing is unlikely for comparative review applications.
  • A fee of $100 per CON-approved covered clinical service in conjunction with the submission of CON annual survey data. Submission of annual survey data is mandatory for all CON-approved services and facilities in Michigan.

If you have questions about PA 137, the CON application process or CON appeals in Michigan, please contact Phyllis Adams at pdadams@dykema.com or (734) 214-7664; or Hilary Viets, Health Care Planner, at hviets@dykema.com or (734) 214-7624.


As part of our service to you, we regularly compile short reports on new and interesting developments in our business services program. Please recognize that these reports do not constitute legal advice and that we do not attempt t cover all such developments. Rules of certain state supreme courts may consider this advertising and require us to advise you of such designation. Your comments on this newsletter, or any Dykema publication, are always welcome. © 2013 Dykema Gossett PLLC.

As part of our service to you, we regularly compile short reports on new and interesting developments and the issues the developments raise. Please recognize that these reports do not constitute legal advice and that we do not attempt to cover all such developments. Rules of certain state supreme courts may consider this advertising and require us to advise you of such designation. Your comments are always welcome. © 2017 Dykema Gossett PLLC.