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CSHB 511(HES): "An Act relating to the certificate of need program for health care facilities; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 511(HES) 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 residential psychiatric 09 treatment centers. (a) The department shall develop review standards for an 10 application for a certificate of need, or for a modification of a certificate of need, 11 issued under this chapter for a health care facility that is a nursing home or residential 12 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 residential psychiatric 17 treatment center, the additional nursing home beds, or the nursing home [HEALTH 18 CARE FACILITY]; 19 (2) the residential psychiatric treatment center, the additional 20 nursing home beds, or the nursing home [HEALTH CARE FACILITY] meets 21 minimum required use rates for, as applicable, the residential psychiatric treatment 22 center or new nursing beds, and the effect on use rates for existing nursing home 23 beds; 24 (3) the 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 residential psychiatric treatment center or the new 28 nursing home beds; 29 (4) the residential psychiatric treatment center, the additional 30 nursing home beds, or the nursing home [HEALTH CARE FACILITY] meets the 31 minimum number of, as applicable, residential psychiatric treatment beds or new

01 nursing beds that should be required in a facility to ensure efficiency and economies of 02 scale; 03 (5) the 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 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 residential psychiatric treatment center or 16 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, residential 22 psychiatric treatment center, tuberculosis hospital, skilled nursing facility, kidney 23 disease treatment center (including freestanding hemodialysis units), intermediate care 24 facility, and ambulatory surgical facility; the term excludes 25 (A) an Alaska Pioneers' Home administered by the Department 26 of Health and Social Services [ADMINISTRATION] under [AS 44.21.020(9) 27 AND] AS 47.55; and 28 (B) the offices of private physicians or dentists whether in 29 individual or group practice; 30 * Sec. 5. AS 18.07.111 is amended by adding a new paragraph to read: 31 (10) "residential psychiatric treatment center" means a secure or semi-

01 secure psychiatric facility or inpatient program in a psychiatric facility that is licensed 02 by the Department of Health and Social Services and that provides therapeutically 03 appropriate and medically necessary diagnostic, evaluation, and treatment services 04 (A) 24 hours a day for children with severe emotional or 05 behavioral disorders; 06 (B) under the direction of a physician; and 07 (C) under a professionally developed and supervised individual 08 plan of care designed to achieve the recipient's discharge from inpatient status 09 at the earliest possible time that is intensively and collaboratively delivered by 10 an interdisciplinary team involving medical, mental health, educational, and 11 social service components. 12 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 APPLICABILITY. AS 18.07.031(d) and (e), enacted by sec. 2 of this Act, apply to a 15 health care facility that enters into a lease agreement for the space occupied or equipment 16 required for that facility on or after the effective date of this Act. 17 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).