Section He-Hea 2203.01 - Other Criteria(a) For construction projects, applicants shall demonstrate that any anticipated proposed cost per square foot shall be comparable in cost within a 10% margin to the 2015 edition of Marshall Valuation Service, section 15.(b) Demonstration of project costs applicable to construction shall be made in the form of a report included with the application which provides: (1) A detail of the costs and space by department or area affected by the proposed project;(2) A comparison of these costs which shall be within 10% of the 2015 edition of Marshall Valuation Service, section 15, for the proposed class and type of construction; and(3) An identification of the square footage for each department or area before and after the project.(c) Applicants shall include a report in the application which provides the following construction considerations: (1) An analysis of the class and quality of construction pursuant to section one of the 2015 Marshall Valuation Service;(2) The allocation of costs within a multiple use building;(3) The allocations of site costs and land costs where facilities are proposed to have multiple uses;(4) The methodology used in calculating construction costs for renovations;(5) The methodology used in calculating construction costs involving leasehold improvements; and(6) The anticipated useful life of the building for depreciation purposes.(d) The following construction costs shall be compared with the 2015 Marshall Valuation Service, section 15: (1) Total costs associated with: (3) Architectural and engineering fees;(4) Site preparation for the building;(5) Utilities from structure to lot line;(6) Insurance costs during construction; and(7) Interest costs during construction.(e) The applicant shall follow the outline of the calculator method set forth in section 10 of the 2015 Marshall Valuation Service to determine construction costs.(f) The construction costs and factors to take into account pursuant to (e) above shall include: (1) The base cost found in the general hospital table in section 15, page 24 of the 2015 Marshall Valuation Service;(2) An adjustment to heating, ventilation, and air-conditioning costs for extreme climate;(3) Sprinkler system costs;(4) Story height multipliers;(5) Perimeter multipliers; and(6) Cost multipliers from section 99 of the 2015 Marshall Valuation Service.(g) All applicants for construction, expansion, renovation, or replacement of robotic assisted surgery systems or services shall describe anticipated operational cost savings that may occur as a result of the project due to:(1) Consolidation of services;(2) Improved heating and maintenance costs;(3) Environmental design of the constructed or renovated space;(4) Space for future expansion; or(5) Other factors not listed above.(h) In order to assess the current and long-range financial feasibility of the proposed construction, expansion, renovation, or replacement project, applicants shall demonstrate that resources:(1) Are available to fund the proposed capital costs and operating costs;(2) Will be available to maintain operations in the event of interruptions to cash flow; and(3) Will be available to ensure the continued operation of the proposed project;.(i) Applicants shall demonstrate financial feasibility by providing with the application: (1) Copies of the facility's 3-year historical and 3-year projected financial statements;(2) A statement of the sources of funds to finance the proposed project;(3) Documentation from the applicant's lender, underwriter, or other anticipated source of capital, which includes:(j) Applicants shall document the assumptions used to determine the overall financial feasibility of the proposed projects to construct, expand, renovate or replace the robotic assisted surgery system equipment and service by providing a report in the application that includes:(1) The source of the documents used to determine the population projections of the primary and secondary service areas, if different than the office of energy and planning, 107 Pleasant Street, Concord, NH;(2) The changes in market conditions which would result in a change in market share;(3) The causes of any anticipated changes in the overall length of stay in the hospital;(4) The assumptions used to prepare the projected financial statements; and(5) Other assumptions the applicant considers pertinent to the project's feasibility.(k) Applicants shall identify the source of any data or information provided pursuant paragraphs (c) through (j) above.N.H. Admin. Code § He-Hea 2203.01
Derived From Volume XXXV Number 49, Filed December 10, 2015, Proposed by #10978, Effective 11/20/2015, Expires 11/20/2025.