Certificate of Need and Convenience (CNC)

CNC for Clinical Laboratory
Teresita Ortiz - September 1995

Licensing of a clinical laboratory in PR requires the granting of a CNC by the Department of Health. Mrs. Ortiz wanted to establish a clinical laboratory in Santurce. HCCG prepared the CNC study documenting the need and convenience of this service in the proposed location. The study included demographic, economic, and health related aspects of the service area as well as an analysis of the competition in the area. The income and expense projections over a five-year period demonstrated the financial feasibility of the service. As a result, the Department of Health granted the CNC for the laboratory.

CNC for Ambulatory Eye Surgery
Dr. M. Tollinche - February 1996

There are highly regulated businesses, such as those related to health services, which require a state license. By law, the Puerto Rico Department of Health requires a certificate of need and convenience study to license health facilities on the Island. Dr. M. Tollinche is an ophthalmologist engaged in eye surgery in PR. He wanted to invest $400,000 to provide special eye surgery with laser techniques in his Bayamón office. HCCG prepared and testified on behalf of the need, convenience, and feasibility of this service. The analysis entailed an evaluation of potential patients to assess the need for these services; a description of the location to determine convenience; and estimates of revenues and expenses to determine the financial feasibility of the service. As a result, the Department of Health granted the CNC for the eye surgery service.

CNC for an Ambulatory Surgical Center
Fajardo Group Practice - April 1997

The recently adopted Government Health Care Reform in PR as well as trends in managed care has resulted in the need for additional and increased health care services and facilities. Fajardo Group Practice, a group of physicians operating in the Fajardo Health Region, wanted to construct a $3.1 million ambulatory emergency ward and surgery center in the area. HCCG prepared the study which included an analysis of the various physicians' specialties within the group; patient survey to identify potential demand in the service area; assessment of facilities in the area; competitive prices; and three scenarios of revenues and costs to determine financial feasibility of the project over a five year period. The study was also used to raise capital among potential investors of the project.

CNC for a Drugstore
J. A. Reyes - July 1996

To start operating a drugstore in PR you are required by law to file a certificate of need and convenience study. Mr. J. Reyes owned a small shopping center in Aguadilla and wished to establish a drugstore in his facility. HCCG prepared the feasibility study and documented the need and convenience the population in the area had for such a service. The study included demographic, economic, and health statistics of the area, an analysis of the location of nearby drugstores, and assessed the financial feasibility of the business over a five-year period. As a result, the Department of Health granted the CNC license.

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