SCS CSHB 511(HES): "An Act relating to the certificate of need program for health care facilities; and providing for an effective date."
00 SENATE CS FOR 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 a new subsection to read: 02 (d) In (a) of this section, "expenditure" includes the purchase of property 03 occupied by or the equipment required for the health care facility and the net present 04 value of a lease for space occupied by or the equipment required for the health care 05 facility; "expenditure" does not include costs associated with routine maintenance and 06 replacement of equipment at an existing health care facility. 07 * Sec. 3. AS 18.07.035 is amended by adding new subsections to read: 08 (b) The department may require a person who intends to submit an application 09 under (a) of this section to submit a letter of intent to the department, except in the 10 case of an application for an emergency or temporary certificate of need authorized 11 under AS 18.07.071. 12 (c) The department shall notify the applicant in writing when the application is 13 complete under this chapter. 14 * Sec. 4. AS 18.07.043 is amended to read: 15 Sec. 18.07.043. Standard of review for applications for certificates of need 16 relating to nursing homes, [AND] nursing home beds, and residential psychiatric 17 treatment centers. (a) The department shall develop review standards for an 18 application for a certificate of need, or for a modification of a certificate of need, 19 issued under this chapter for a health care facility that is a nursing home or residential 20 psychiatric treatment center, or that has nursing home beds. 21 (b) In developing the review standards under (a) of this section, the 22 department shall consider whether 23 (1) a public process and existing appropriate statewide, regional, and 24 local plans were included in planning and designing the residential psychiatric 25 treatment center, the additional nursing home beds, or the nursing home [HEALTH 26 CARE FACILITY]; 27 (2) the residential psychiatric treatment center, the additional 28 nursing home beds, or the nursing home [HEALTH CARE FACILITY] meets 29 minimum required use rates for, as applicable, the residential psychiatric treatment 30 center or new nursing beds, and the effect on use rates for existing nursing home 31 beds;
01 (3) the residential psychiatric treatment center, the facility 02 proposing additional nursing home beds, or the nursing home [HEALTH CARE 03 FACILITY] demonstrates consideration of the community, regional, and statewide 04 needs for, as applicable, the residential psychiatric treatment center or the new 05 nursing home beds; 06 (4) the residential psychiatric treatment center, the additional 07 nursing home beds, or the nursing home [HEALTH CARE FACILITY] meets the 08 minimum number of, as applicable, residential psychiatric treatment beds or new 09 nursing beds that should be required in a facility to ensure efficiency and economies of 10 scale; 11 (5) the residential psychiatric treatment center, the facility 12 proposing additional nursing home beds, or the nursing home [HEALTH CARE 13 FACILITY] demonstrates the proposed service will provide a quality of care 14 equivalent to existing community, regional, or statewide services; 15 (6) the residential psychiatric treatment center, the facility 16 proposing additional nursing home beds, or the nursing home [HEALTH CARE 17 FACILITY] demonstrates financial feasibility, including long-term viability, and what 18 the financial effect will be on consumers and the state; and 19 (7) the sponsor has demonstrated cost effectiveness through 20 considering the availability of appropriate, less costly alternatives of providing the 21 services planned. 22 (c) The department shall grant a sponsor a certificate of need or modify a 23 certificate of need that authorizes a residential psychiatric treatment center or 24 nursing home beds, or that is for a health care facility that is a nursing home, if the 25 department finds that the sponsor meets the standards established in or under this 26 chapter. 27 * Sec. 5. AS 18.07 is amended by adding a new section to read: 28 Sec. 18.07.045. Time standards for review of applications for certificates 29 of need. (a) The following time standards apply for a review by the department of an 30 application for a certificate of need under this chapter: 31 (1) the department may defer commencement of the review process
01 under this chapter for an application for a period not to exceed 60 days after the 02 determination that the application is complete in order to allow the department to 03 receive and consider concurrent applications from each person who has submitted a 04 letter of intent to submit an application proposing an activity that is similar to the 05 activity proposed by the application in the geographic area; 06 (2) the department shall review the application made under this chapter 07 and submit an analysis and recommendation to the commissioner within 60 days after 08 the date that notification under AS 18.07.035(c) is sent to the applicant stating that the 09 application is complete. 10 (b) The commissioner may extend the time periods set out in (a) of this section 11 for not more than 30 days for any of the following reasons: 12 (1) the applicant amends the application under this chapter; 13 (2) the department requests an extension of time within which to 14 prepare its findings and recommendations on the application; the commissioner may 15 grant only one extension under this paragraph. 16 * Sec. 6. AS 18.07.111(8) is amended to read: 17 (8) "health care facility" means a private, municipal, state, or federal 18 hospital, psychiatric hospital, independent diagnostic testing facility, residential 19 psychiatric treatment center, tuberculosis hospital, skilled nursing facility, kidney 20 disease treatment center (including freestanding hemodialysis units), intermediate care 21 facility, and ambulatory surgical facility; the term excludes 22 (A) an Alaska Pioneers' Home administered by the Department 23 of Health and Social Services [ADMINISTRATION] under [AS 44.21.020(9) 24 AND] AS 47.55; and 25 (B) the offices of private physicians or dentists whether in 26 individual or group practice; 27 * Sec. 7. AS 18.07.111 is amended by adding a new paragraph to read: 28 (10) "residential psychiatric treatment center" means a secure or semi- 29 secure psychiatric facility or inpatient program in a psychiatric facility that is licensed 30 by the Department of Health and Social Services and that provides therapeutically 31 appropriate and medically necessary diagnostic, evaluation, and treatment services
01 (A) 24 hours a day for children with severe emotional or 02 behavioral disorders; 03 (B) under the direction of a physician; and 04 (C) under a professionally developed and supervised individual 05 plan of care designed to achieve the recipient's discharge from inpatient status 06 at the earliest possible time that is intensively and collaboratively delivered by 07 an interdisciplinary team involving medical, mental health, educational, and 08 social service components. 09 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 APPLICABILITY. (a) AS 18.07.031(d), enacted by sec. 2 of this Act, applies to a 12 health care facility that enters into a lease agreement for the space occupied or equipment 13 required for that facility on or after the effective date of this Act. 14 (b) AS 18.07.035(b) and (c) and 18.07.045, enacted by secs. 3 and 5 of this Act, 15 respectively, apply to a certificate of need application filed with the Department of Health and 16 Social Services after the effective date of this Act. 17 (c) AS 18.07.043, as amended by sec. 4 of this Act, does not apply to a health care 18 facility that is a residential psychiatric treatment center that is under construction before the 19 effective date of this Act if the facility is in compliance with all other applicable federal, state, 20 and local laws. For purposes of this subsection, "under construction" means that 21 (1) the owner of the facility has for the facility 22 (A) complete architectural plans approved by the applicable agency; 23 (B) a building permit; 24 (2) the foundation of the facility is being or has been laid; and 25 (3) the construction of the facility is completed within two years after the 26 effective date of this Act. 27 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).