Construction of Healthcare Facilities: Procurement of Funding, Zoning, Environment Constraints, Certificate of Need

Description

The current health crisis has spotlighted the need to address and expand healthcare facilities in the U.S., starting with addressing construction and design needs. Healthcare construction is unique in the number of legal issues raised throughout the project, from procuring funding and addressing zoning and environmental issues, to anticipating regulatory setbacks. The construction of a hospital or medical center must take a comprehensive approach.

More than half of U.S. states have CON programs, which regulate the establishment or expansion of healthcare facilities and services in a given area by approving their major capital expenditures. If a CON is required, consideration should be given to contingencies in key contracts. Likewise, construction attorneys should understand the roles of the Centers for Medicare & Medicaid Services (CMS) and the Joint Commission that impact the expectations and timeline for government licensing following construction. Overlooking specific requirements during construction--for example, the minimum width of a hallway--could result in denial of an operating license.

Construction counsel for hospitals and other healthcare providers must draft contracts with maximum flexibility to address the ongoing needs, including the scope of work, feasibility issues in design and scheduling, and compliance standards. Appreciating local DOB issues, and that some major cities necessitate the involvement of expediters or "Code Consultants," is also imperative.

Listen as our expert panel of construction attorneys provides key insights on the issues likely to give rise to claims in a healthcare build. The panel will address what contract drafting and consulting counsel should understand and input into contracts to protect their healthcare provider clients in preparation of a construction project.