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216B.040 Functions of cabinet in administering chapter -- Regulatory authority.

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Page 1 of 3 216B.040 Functions of cabinet in administering chapter -- Regulatory authority. (1) The cabinet shall have four (4) separate and distinct functions in administering this chapter: <br>(a) To approve or deny certificates of need in accordance with the provisions of this chapter, except as to those applications which have been granted <br>nonsubstantive review status by the cabinet; (b) To issue and to revoke certificates of need; <br>(c) To provide a due process hearing and issue a final determination on all actions by the cabinet to deny, revoke, modify, or suspend licenses of health facilities <br>and health services issued by the cabinet; and (d) To enforce, through legal actions on its own motion, the provisions of this chapter and its orders and decisions issued pursuant to its functions. (2) The cabinet shall: (a) Promulgate administrative regulations pursuant to the provisions of KRS Chapter 13A: <br>1. To establish the certificate of need review procedures, including but not <br>limited to, application procedures, notice provisions, procedures for <br>review of completeness of applications, and timetables for review <br>cycles. 2. To establish criteria for issuance and denial of certificates of need which <br>shall be limited to the following considerations: <br>a. Consistency with plans. Each proposal approved by the cabinet <br>shall be consistent with the state health plan, and shall be subject <br>to biennial budget authorizations and limitations, and with <br>consideration given to the proposal's impact on health care costs in <br>the Commonwealth. The state health plan shall contain a need <br>assessment for long-term care beds, which shall be based on a <br>statistically valid analysis of the present and future needs of the <br>state as a whole and counties individually. The need assessment <br>shall be applied uniformly to all areas of the state. The <br>methodology shall be reviewed and updated on an annual basis. <br>The long-term care bed need criteria in the state health plan or as <br>set forth by the appropriate certificate of need authority shall give <br>preference to conversion of personal care beds and acute care beds <br>to nursing facility beds, so long as the state health plan or the <br>appropriate certificate of need authority establishes a need in the <br>affected counties and the proposed conversions are more cost-<br>effective than new construction. The fact that the state health plan <br>shall not address the specific type of proposal being reviewed shall <br>not constitute grounds for disapproval of the proposal. <br>Notwithstanding any other provision of law, the long-term care <br>bed need criteria in the state health plan or as set forth by the <br>appropriate certificate of need authority shall not consider, factor Page 2 of 3 in, or include any continuing care retirement community's nursing <br>home beds established under KRS 216B.015, 216B.020, <br>216B.330, and 216B.332; b. Need and accessibility. The proposal shall meet an identified need <br>in a defined geographic area and be accessible to all residents of <br>the area. A defined geographic area shall be defined as the area the <br>proposal seeks to serve, including its demographics, and shall not <br>be limited to geographical boundaries; c. Interrelationships and linkages. The proposal shall serve to <br>accomplish appropriate and effective linkages with other services, <br>facilities, and elements of the health care system in the region and <br>state, accompanied by assurance of effort to achieve <br>comprehensive care, proper utilization of services, and efficient <br>functioning of the health care system; d. Costs, economic feasibility, and resources availability. The <br>proposal, when measured against the cost of alternatives for <br>meeting needs, shall be judged to be an effective and economical <br>use of resources, not only of capital investment, but also ongoing <br>requirements for health manpower and operational financing; e. Quality of services. The applicant shall be prepared to and capable <br>of undertaking and carrying out the responsibilities involved in the <br>proposal in a manner consistent with appropriate standards and <br>requirements assuring the provision of quality health care services, <br>as established by the cabinet; f. Hospital-based skilled nursing, intermediate care, and personal <br>care beds shall be considered by the cabinet in determining the <br>need for freestanding long-term care beds. (b) Conduct public hearings, as requested, in respect to certificate-of-need applications, revocations of certificates of need, and denials, suspensions, <br>modifications, or revocations of licenses. (3) The cabinet may: (a) Issue other administrative regulations necessary for the proper administration of this chapter; (b) Administer oaths, issue subpoenas, subpoenas duces tecum, and all necessary process in proceedings brought before or initiated by the cabinet, and the <br>process shall extend to all parts of the Commonwealth. Service of process in <br>all proceedings brought before or initiated by the cabinet may be made by <br>certified mail, or in the same manner as other process in civil cases, as the <br>cabinet directs; (c) Establish by promulgation of administrative regulation under KRS Chapter 13A reasonable application fees for certificates of need; (d) Appoint technical advisory committees as are deemed necessary to administer its functions under the provisions of this chapter; Page 3 of 3 (e) Establish a mechanism for issuing advisory opinions to prospective applicants for certificates of need regarding the requirements of a certificate of need; and (f) Establish a mechanism for biennial review of projects for compliance with the terms of the certificate of need. Effective: July 14, 2000 <br>History: Amended 2000 Ky. Acts ch. 264, sec. 3, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 299, sec. 2, effective July 15, 1996; and ch. 371, sec. 40, effective <br>July 15, 1996. -- Amended 1994 Ky. Acts ch. 512, Part 7, sec. 26, effective July 15, <br>1994. -- Amended 1990 Ky. Acts ch. 493, sec. 1, effective July 13, 1990; and <br>ch. 499, sec. 3, effective July 13, 1990. --Amended 1988 Ky. Acts ch. 210, sec. 9, <br>effective July 15, 1988. -- Amended 1982 Ky. Acts ch. 347, sec. 6, effective July 15, <br>1982. -- Created 1980 Ky. Acts ch. 135, sec. 7, effective July 15, 1980.