15 Miss. Code. R. 8-90-05-502.03
MSDH will review applications for a Certificate of Need for the addition of beds to a health care facility and projects for construction, renovation, expansion, or capital improvement involving a capital expenditure in excess of $5,000,000 (for clinical health services) or $10,000,000 (for nonclinical health services). MSDH will further review applications under the applicable statutory requirements of Sections 41-7-173, 41-7-191, and 41-7-193, Mississippi Code 1972, as amended. MSDH will also review applications for Certificate of Need according to the general criteria listed in the Mississippi Certificate of Need Review Manual; all adopted rules, procedures, and plans of the MSDH; and the specific criteria and standards listed below.
The construction, development, or other establishment of a new health care facility, the replacement and/or relocation of a health care facility or portion thereof, and changes of ownership of existing health care facilities are reviewable regardless of capital expenditure.
Need Criterion 1: Acute Care Bed Need
The applicant shall document the need for the proposed project. Documentation may consist of, but is not limited to, citing of licensure or regulatory code deficiencies, institutional long-term plans (duly adopted by the governing board), recommendations made by consultant firms, and deficiencies cited by accreditation agencies (JCAHO, CAP, etc.). In addition, for projects which involve construction, renovation, or expansion of emergency department facilities, the applicant shall include a statement indicating whether the hospital will participate in the statewide trauma system and describe the level of participation, if any.
The applicant shall document the need for the proposed project. In addition to the documentation required as stated in Need Criterion (1) (a), the applicant shall document that the facility in question has maintained an occupancy rate of at least sixty percent (60%) for the most recent two (2) years or has maintained an occupancy rate of at least seventy percent (70%) for the most recent two (2) years according to the below formula:
Note: *An observation patient day is a patient that has NOT been admitted as an inpatient, but occupies an acute care bed (observation bed) and is provided observation services in a licensed, acute care hospital. Hospitals shall follow strict guidelines set forth by The Centers for Medicare & Medicaid Services, health insurance companies, and others in reporting observation bed data to the Department. For definitions that correspond with the above referenced item, please refer to the Glossary included in the Plan.
Need Criterion 2: Bed Service Transfer/Reallocation/Relocation
Applications proposing the transfer, reallocation, and/or relocation of a specific category or sub-category of bed/service from another facility as part of a renovation, expansion, or replacement project shall document that the applicant will meet all regulatory/licensure requirements for the type of bed/service being transferred/reallocated/relocated.
Need Criterion 3: Charity/Indigent Care
The application shall affirm that the applicant will provide a "reasonable amount" of indigent/charity care as described in Chapter 1 of this Plan.
Need Criterion 4: Cost of Project
The application shall demonstrate that the cost of the proposed project, including equipment, is reasonable in comparison with the cost of similar projects in the state.
Need Criterion 5: Project Specifications
The applicant shall specify the floor areas and space requirements, including the following factors:
Need Criterion 6: Renovation/Expansion Justification
If the cost of the proposed renovation or expansion project exceeds eighty-five percent (85%) of the cost of a replacement facility, the applicant shall document their justification for rejecting the option of replacing said facility.
Need Criterion 7: Need for Service
The applicant shall document the need for a specific service (i.e. perinatal, ambulatory care, psychiatric, etc.) using the appropriate service specific criteria as presented in this and other sections of the Plan.
15 Miss. Code. R. 8-90-05-502.03