Oklahoma Administrative Code (Last Updated: March 11, 2021) |
TITLE 310. Oklahoma State Department of Health |
Chapter 4. Certificate of Need Hearings |
SECTION 310:4-1-5. Standard review process
Latest version.
- (1) Capital Cost. For purposes of determining filing fees, capital cost means one or more of the following depending on the underlying nature of the transaction.(A) For construction, the total cost of the project shall include the following components as applicable: land acquisition and site development, soil survey and investigation, construction, equipment, architect fees, engineering fees, supervision, performance and payment bonds, contingency, and inflation factor.(B) For acquisition by purchase, the total cost of the project shall be the greater of current book value of building and/or equipment, or total contract price including any exchanges or other consideration.(C) For acquisition by lease, the total cost of the project shall be 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 shall be the greater of the purchase cost or current book value of the facility.(E) For a non-monetary transfer of stock, the total capital cost of the project shall be 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 shall be the greater of the value of the consideration given for the stock or the book value of the facility on the seller's books.(G) For a management contract that includes no purchase, lease, donation, transfer of stock, corporate merger, assignment or foreclosure of building, equipment or other assets, the capital cost shall be zero dollars ($0).(H) For any other type of project, including but not limited to an addition of beds through conversion of a previously constructed physical plant, the project cost shall be based on the greater of the book value or fair market value of the assets required to accomplish the project.(I) For any type of project in which book value is used to establish the capital cost, the book value shall be based on audited financial statements or upon generally accepted accounting principles.(2) Applicant. The applicant for a Certificate of Need shall include:(A) For a long-term care facility:(i) The person or entity that is or will be the owner, as that term is defined in 63 O.S. Section 1-1902;(ii) The person or entity that is or will be the licensee, as that term is defined in 63 O.S. Section 1-1902;(iii) The person or entity that is or will bethe manager as that term is defined in OAC 310 675-1-2.; and(iv) Any person with a controlling interest, as that term is defined in 63 O.S. Section 1-851.1; or(B) For a hospital, the entity responsible for operation as defined in OAC 310:667-1-3.(3) Filing the application. The applicant must apply using a form available from the Department. The form must be accompanied by a filing fee in the form of a check payable to the Oklahoma State Health Department.(A) The fee for an application submitted under the Long Term Care Certificate of Need Act shall be in the amount specified in the Act.(B) The fee for an application submitted under the Psychiatric and Chemical Dependency Facility Certificate of Need Act shall be 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 issues an approval or denial on the application, one of the following refunds shall apply:(i) For an application that is withdrawn prior to the Department's determination of whether the application is complete or incomplete the refund shall be seventy-five percent (75%) of the fee paid;(ii) For an application that is withdrawn before the deadline for participation by parties the refund shall be fifty percent (50%) of the fee paid; or(iii) For an application that is withdrawn before the issuance of the Commissioner's final decision the refund shall be twenty-five percent (25%) of the fee paid.(D) The refund to the applicant pursuant to 310:4-1-5(3)(C) shall not cause the total fee paid by the applicant to be less than the applicable minimum fee set in the Long Term Care Certificate of Need Act or 310:4-1-5(3)(B).(4) Completing the application. Within fifteen (15) days after the application is filed, the Department shall determine whether or not the application is complete, clear, consistent and accurate. If the Department finds that the application is not complete, the Department shall send a written notice to the applicant requesting the additional or clarifying information needed to make the application complete. The applicant shall file all the requested information with the Department, to be received by the Department not later than ninety (90) days after the date of the notice, or the application shall be summarily dismissed. The Department's finding of completeness shall 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. The Department shall notify the applicant by mail when the application is determined complete. Also, the Department shall mail notice to health care facilities which provide the same type of service in the service area. The Department shall cause a paid public notice to be published 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. These notices shall include the name and location of the facility, a brief description of the project, information on where the full application can be viewed, and 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.(7) Decision deadlines. The decision to approve or deny a certificate of need for acquisition of a psychiatric or chemical dependency facility shall be made within fifteen (15) days after the deadline for submitting evidence and argument as provided in OAC 310:4-1-5(6). The decision to approve or deny any other type of certificate of need shall be made within forty-five (45) days after the deadline for submitting evidence and argument as provided in OAC 310:4-1-5(6).(8) Report of investigation. If the Department's investigation indicates that the application is not consistent with applicable criteria and standards, then the Department shall notify the applicant of such inconsistencies in writing prior to the decision deadline in 310:4-1-5(7). The applicant shall be offered an opportunity to respond in writing to the Department's notice. To allow the applicant sufficient time to respond and upon mutual agreement of the applicant and the Department, the decision deadline may be extended to a date certain. Upon receipt of the applicant's response, the Department may amend the report of investigation but shall not be required to offer the applicant a second opportunity to respond. The Commissioner shall consider the applicant's response in making a decision on the certificate of need application. The provisions of this subsection shall not apply if any person has knowingly given false, misleading, or intentionally incomplete information in the application.
[Source: 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]