Much speculation and rumor exists in New York with regard to obtaining a Certificate of Need from the Department of Health for a Surgery Center or a Diagnostic and Treatment Center. These Certificate of Need facilities are sought after by doctors and non-doctors alike, since the ability to collect a facility fee provides a wide range of opportunities not available in a traditional practice. Additionally, it permits non-doctors to be owners of such a facility which is specifically approved by the New York State Department of Health.
In many northeastern states, including New York, as well as many other states across the country, the theory behind the Corporate Practice of Medicine Doctrine is the belief that a medical practice not owned by a physician or medical professional, is not going to function and provide the same quality of care as a physician-owned practice or similar health care provider. This belief is due to the fact that the practice would become beholden to non-doctor shareholders who would dictate treatment based upon economics rather than quality of care.
An Article 28 facility is approved by the New York State Department of Health through the Certificate of Need process. The same application process and law (Article 28 of the New York State Public Health Law) also applies to Surgical Centers and Nursing Homes as well as general hospitals. There are similar and specific requirements as far as what the Department of Health is looking for from each facility. Understanding the process and these requirements is important in order to obtain a Certificate of Need to own and operate a Diagnostic and Treatment Center. An Article 28 Diagnostic and Treatment Center can be the proper tool for you to operate your practice. Much about them is misunderstood leading to many misconceptions about what they are and are not. The following are the four most important factors to consider when determining if a Diagnostic and Treatment Center is right for you: