Section He-Hea 303.06 - Standard Relating to the Issue of Affordability(a) Applicants shall demonstrate that the proposed project will be affordable and financially feasible by supplying with the application: (1) A statement of sources of funds indicating that funds are/shall be available to support the project including how the project will be funded through the applicant's own sources in the form of equity and/or borrowings from lending institutions;(2) A financial plan which examines: a. The current financial climate of the region and the state; andb. The effect the project will have on operating and capital expenses and income for the period immediately prior to, during, and for 3 years after project completion;(3) A report indicating: a. That revenues shall be available in sufficient quantity to support the present operating levels, the added operating costs, and, if applicable, the added debt service;b. The financial impact of increased utilization resulting from the project, including the effect on the average cost of a procedure;c. The impact of the project on total health care costs of the state, including a discussion as to whether total health care costs will be increased, not just whether unit costs will be decreased; andd. The anticipated impact the proposed project will have on costs and charges on the applicant's own facility including but not limited to: 1. Applicant's proposed charges for the services represented by the project for the 3 years following project completion; and2. Applicant's anticipated adjustments to charges for applicant's other heath care services, as a direct result of this project, through the end of the third year following project completion;(4) An overall analysis of the methods of construction in terms of:a. Types of construction according to the categories outlined in Section 1, pages 4 through 11, of the Marshall Valuation Service, 2015 edition, as specified in Appendix II;b. Floor plans which depict the facility prior to and after project completion;c. Structural design as it relates to the possibility of vertical and/or horizontal expansion of the building(s); and(5) An outline of the total capital expenditure for the project, including such project costs as are capital expenditures with respect to the project; and(6) A statement as to whether the applicant or petitioner considers any of the foregoing costs not to be capital expenditures pursuant to RSA 151-C:2, VI, along with appropriate citation of generally accepted accounting principles, and demonstration of consistent application thereof in applicants financial accounting practices.(b) Applicants shall describe in the application the effect the proposed project will have on: (1) Insurance providers including Medicare, Medicaid, insurance companies;(2) Alternative delivery systems such as health maintenance organizations, preferred provider organizations and independent practice organizations;(3) Other payers for health care services, including employers and individuals;(4) The availability and affordability of the services represented by the project to persons who are uninsured or otherwise do not have the financial resources to pay for the service; and(5) The contribution to the overall healthcare costs of the state in terms of increased patient utilization.N.H. Admin. Code § He-Hea 303.06
#7139, eff 11-23-99, EXPIRED: 11-23-07
New. #9075-B, eff 1-24-08; ss by #10518, INTERIM, eff 2-11-14, EXPIRES: 8-11-14
Amended by Volume XXXVI Number 19, Filed May 12, 2016, Proposed by #11081-B, Effective 4/23/2016, Expires 4/23/2026.