HB 511: "An Act relating to the certificate of need program for health care facilities; and providing for an effective date."
00 HOUSE BILL NO. 511 01 "An Act relating to the certificate of need program for health care facilities; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 18.07.031(c) is amended to read: 05 (c) Notwithstanding (a) of this section, a person who is lawfully operating a 06 health care facility that is an ambulatory surgical facility at a site may make an 07 expenditure of any amount in order to relocate the services of that facility to a new site 08 in the same community without obtaining a certificate of need as long as neither the 09 bed capacity nor the number of categories of health services provided at the new site is 10 greater. [HOWEVER, NOTWITHSTANDING THE EXPENDITURE THRESHOLD 11 IN (a) OF THIS SECTION, A PERSON MAY NOT USE THE SITE FROM WHICH 12 THE HEALTH CARE FACILITY RELOCATED FOR ANOTHER HEALTH CARE 13 FACILITY UNLESS AUTHORIZED UNDER A CERTIFICATE OF NEED ISSUED 14 BY THE DEPARTMENT.]
01 * Sec. 2. AS 18.07.031 is amended by adding new subsections to read: 02 (d) A person who relocates a health care facility under (c) of this section may 03 only relocate one time without a certificate of need. 04 (e) In (a) of this section, "expenditure" includes the net present value of a 05 lease for space occupied by or the equipment required for a health care facility. 06 * Sec. 3. AS 18.07.043 is amended to read: 07 Sec. 18.07.043. Standard of review for applications for certificates of need 08 relating to nursing homes, [AND] nursing home beds, and secure residential 09 psychiatric treatment centers. (a) The department shall develop review standards 10 for an application for a certificate of need, or for a modification of a certificate of 11 need, issued under this chapter for a health care facility that is a nursing home or 12 secure residential psychiatric treatment center, or that has nursing home beds. 13 (b) In developing the review standards under (a) of this section, the 14 department shall consider whether 15 (1) a public process and existing appropriate statewide, regional, and 16 local plans were included in planning and designing the secure residential 17 psychiatric treatment center, the additional nursing home beds, or the nursing home 18 [HEALTH CARE FACILITY]; 19 (2) the secure residential psychiatric treatment center, the 20 additional nursing home beds, or the nursing home [HEALTH CARE FACILITY] 21 meets minimum required use rates for, as applicable, the secure residential 22 psychiatric treatment center or new nursing beds, and the effect on use rates for 23 existing nursing home beds; 24 (3) the secure residential psychiatric treatment center, the facility 25 proposing additional nursing home beds, or the nursing home [HEALTH CARE 26 FACILITY] demonstrates consideration of the community, regional, and statewide 27 needs for, as applicable, the secure residential psychiatric treatment center or the 28 new nursing home beds; 29 (4) the secure residential psychiatric treatment center, the 30 additional nursing home beds, or the nursing home [HEALTH CARE FACILITY] 31 meets the minimum number of, as applicable, secure residential psychiatric
01 treatment beds or new nursing beds that should be required in a facility to ensure 02 efficiency and economies of scale; 03 (5) the secure residential psychiatric treatment center, the facility 04 proposing additional nursing home beds, or the nursing home [HEALTH CARE 05 FACILITY] demonstrates the proposed service will provide a quality of care 06 equivalent to existing community, regional, or statewide services; 07 (6) the secure residential psychiatric treatment center, the facility 08 proposing additional nursing home beds, or the nursing home [HEALTH CARE 09 FACILITY] demonstrates financial feasibility, including long-term viability, and what 10 the financial effect will be on consumers and the state; and 11 (7) the sponsor has demonstrated cost effectiveness through 12 considering the availability of appropriate, less costly alternatives of providing the 13 services planned. 14 (c) The department shall grant a sponsor a certificate of need or modify a 15 certificate of need that authorizes a secure residential psychiatric treatment center 16 or nursing home beds, or that is for a health care facility that is a nursing home, if the 17 department finds that the sponsor meets the standards established in or under this 18 chapter. 19 * Sec. 4. AS 18.07.111(8) is amended to read: 20 (8) "health care facility" means a private, municipal, state, or federal 21 hospital, psychiatric hospital, independent diagnostic testing facility, secure 22 residential psychiatric treatment center, tuberculosis hospital, skilled nursing 23 facility, kidney disease treatment center (including freestanding hemodialysis units), 24 intermediate care facility, and ambulatory surgical facility; the term excludes 25 (A) an Alaska Pioneers' Home administered by the Department 26 of Administration under AS 44.21.02(9) and AS 47.55; and 27 (B) the offices of private physicians or dentists whether in 28 individual or group practice; 29 * Sec. 5. AS 18.07.111 is amended by adding a new paragraph to read: 30 (10) "secure residential psychiatric treatment center" has the meaning 31 given in AS 47.35.900.
01 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 APPLICABILITY. AS 18.07.031(d) and (e), enacted by sec. 2 of this Act, apply to a 04 health care facility that enters into a lease agreement for the space occupied or equipment 05 required for that facility on or after the effective date of this Act. 06 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).