Okla. Admin. Code § 310:4-1-5

Current through Vol. 42, No. 6, December 2, 2024

Section 310:4-1-5 - Review process

This Section governs the review of Certificate of Need applications.

(1)Capital Cost. For purposes of determining filing fees, capital cost means one or more of the following:

(A) For construction, the total cost of the project includes the following components as applicable:

(i) land acquisition and site development;

(ii) soil survey and investigation;

(iii) construction;

(iv) equipment;

(v) architect fees;

(vi) engineering fees;

(vii) supervision;

(viii) performance and payment bonds;

(ix) contingency; and

(x) inflation factor.

(B) For acquisition by purchase, the total cost of the project is the greater of the building and equipment's current book value or total contract price, including any exchanges or other consideration.

(C) For acquisition by lease, the total cost of the project is the current book value of the facility to be leased plus any additional capital expenditures, such as equipment purchases.

(D) For a sale and leaseback, or a combination lease and purchase, the total cost of the project is the greater of the purchase cost or the facility's current book value.

(E) For a non-monetary transfer of stock, the total capital cost of the project is zero dollars ($0).

(F) For a transfer of stock in which one party pays or exchanges other consideration to acquire the stock of another party, the total cost of the project is the greater of the value of the consideration given for the stock or the facility's book value on the seller's books.

(G) For a management contract the capital cost is zero dollars ($0), if it includes none of the following:

(i) purchase;

(ii) lease;

(iii) donation;

(iv) transfer of stock;

(v) corporate merger;and

(vi) assignment or foreclosure of building, equipment or other assets.

(H) For any other type of project, the project cost is the greater of the book value or the fair market value of the assets required to accomplish the project. This includes but is not limited to an addition of beds through conversion of a previously constructed physical plant,.

(I) For any type of project in which book value is used to establish the capital cost, the book value is based on audited financial statements or upon generally accepted accounting principles.

(2)Applicant. The applicant for a Certificate of Need must include:

(A) for a long-term care facility:

(i) the person or entity that is or will be the owner, as defined in 63 O.S. Section 1-1902;

(ii) the person or entity that is or will be the licensee, as defined in 63 O.S. Section 1-1902;

(iii) the person or entity that is or will be the manager as defined in OAC 310:675-1-2; and

(iv) any person with a controlling interest as defined in 63 O.S. Section 1-851.1; or

(B) for a hospital, the entity operating the hospital as defined in OAC 310:667-1-3.

(3)Application fees and refunds. The applicant must use the Department's form and pay the appropriate filing fee to the Department.

(A) . The following fees are required to be submitted in accordance with 63 O.S. Section 1-852.1.

(i) the application fee for a new Certificate of Need is three thousand dollars ($3,000.00); and

(ii) an application for acquisition of healthcare facility fee is one half of one percent (.50%) of the capital cost of the project with a maximum fee of five thousand dollars ($5,000.00).

(B) The Psychiatric and Chemical Dependency Facility Certificate of Need Act's application fee is three-fourths of one percent (.75%) of the capital cost of the project, with a minimum of One Thousand Five Hundred Dollars ($1,500.00) and a maximum of Ten Thousand Dollars ($10,000.00).

(C) If an application is withdrawn before the Department approves or denies the application, one of the following refunds will apply:

(i) The refund is seventy five percent (75%) of the fee paid when an application is withdrawn before the Department determines if the application is complete or incomplete.

(ii) The refund is fifty percent (50%) of the fee paid when an application is withdrawn before the "participation by parties" deadline, as defined in subparagraph (6) of this subsection.

(iii) The refund is twenty five percent (25%) of the fee paid when an application is withdrawn before the Commissioner issues a final decision.

(D) The applicant's refund, in accordance with subparagraph (3)(C) of this subsection will not cause the total fee paid by the applicant to be less than the applicable minimum fee set in 63 O.S. Section 1-852.1 or subparagraph (3)(B) of this subsection.

(4)Completing the application.

(A) Within fifteen (15) days after the application is filed, the Department must determine if the application is complete, clear, consistent and accurate.

(B) When the Department determines an application is incomplete, it will send the applicant written notice requesting the additional or clarifying information needed to complete the application.

(C) The applicant must submit all requested information to the Department within 90 days after the date of the notice of incomplete application. If the applicant fails to do so, then the application is summarily dismissed.

(D) The Department's finding of completeness does not prevent the Department from subsequently denying a Certificate of Need based on such incompleteness, lack of clarity, inconsistency, or inaccuracy that may be discovered by the Department as the result of the investigation conducted pursuant to 63 O.S. Section 1-852 or 63 O.S. Section 1-880.6.

(5)Notice of readiness for review. When the Department determines that an application is complete and ready for review, it will send the following notices:

(A) mail the applicant notification that the application is determined complete and ready for review.

(B) mail health care facilities that provide the same type of service in the service area notification that an application is complete and ready for review.

(C) publish notice in a newspaper of general circulation near the facility, and in a newspaper of general circulation in the area where the application is available for inspection.

(D) These notices must include:

(i) the name and location of the facility,

(ii) a brief description of the project,

(iii) information on where the full application can be viewed, and

(iv) an explanation of how parties may participate in the review.

(6)Participation by parties. Any person or agency may participate in the review process. Any evidence or argument that a participating party proposes to have the Commissioner consider before making a final decision shall be submitted to the Department in writing within twenty (20) days after the date of publication of the paid public notice as described in subparagraph (5) (C) of this subsection.

(7)Decision deadlines.

(A) The decision to approve or deny a Certificate of Need for acquisition of a psychiatric or chemical dependency facility is made within fifteen (15) days after the deadline for submitting evidence and argument as provided in subparagraph(6) of this subsection.

(B) The decision to approve or deny any other type of Certificate of Need application, except the Certificate of Need listed in subparagraph (7)(A) of this subsection, is made within forty-five (45) days after the deadline for submitting evidence and argument as provided in subparagraph (6) of this subsection.

(8)Report of investigation.

(A) If the Department's investigation indicates that the application is inconsistent with applicable criteria and standards, then the Department will notify the applicant in writing of the inconsistencies before the decision deadline stated in paragraph (7) of this subsection.

(B) The applicant shall be offered an opportunity to respond in writing to the Department's notice. To allow the applicant sufficient time to respond, the decision deadline may be extended to a date certain-by agreement between the Department and the applicant.

(C) On receipt of the applicant's response, the Department may amend the investigation report but is not required to offer the applicant a second opportunity to respond.

(D) The Commissioner will consider the applicant's response when making a decision on the Certificate of Need application.

(E) The provisions of this subsection do not apply if any person has knowingly given false, misleading, or intentionally incomplete information in the application.

Okla. Admin. Code § 310:4-1-5

Amended at 10 Ok Reg 3437, eff 7-1-93 (emergency); Amended at 11 Ok Reg 2609, eff 6-25-94; Amended at 12 Ok Reg 3025, eff 7-27-95; Amended at 14 Ok Reg 2247, eff 6-12-97; Amended at 16 Ok Reg 2450, eff 6-25-99; Amended at 18 Ok Reg 2468, eff 6-25-01; Amended at 19 Ok Reg 2042, eff 6-27-02; Amended at 22 Ok Reg 2363, eff 7-11-05

Amended by Oklahoma Register, Volume 38, Issue 24, September 1, 2021, eff. 9/11/2021