Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS 216B.015(6),
(31),
216B.061(1)(e),
216B.990(2)
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
216B.040(2)(a) 1 requires
the Cabinet for Health and Family Services to administer Kentucky's Certificate
of Need Program and to promulgate administrative regulations as necessary for
the program.
KRS
216B.061(4) requires the
cabinet to establish the requirements for administrative escalations. This
administrative regulation establishes the requirements for an administrative
escalation.
Section 1. Definitions.
(1) "Administrative escalation" means an
approval from the cabinet to increase the capital expenditure authorized for a
certificate of need project.
(2)
"Cabinet" is defined by
KRS
216B.015(6).
(3) "Substantial change in a project" is
defined by
KRS
216B.015(31).
Section 2. Administrative
Escalations.
(1) A person shall not obligate
a capital expenditure in excess of the amount authorized by an existing
certificate of need or a previously approved administrative escalation unless
the person has received an administrative escalation or an additional
certificate of need from the cabinet.
(2) A request for an administrative
escalation shall be submitted to the cabinet on the CON -Form 6, Cost
Escalation Form, incorporated by reference in
900 KAR
6:055.
(3)
The cabinet shall authorize an administrative escalation for funds that have
not been obligated and that do not exceed the following limits if there is not
a substantial change in the project:
(a)
$100,000, if the capital expenditure authorized by the certificate of need or a
previously approved cost escalation is less than $500,000; and
(b) Twenty-five (25) percent of the capital
expenditure if the capital expenditure authorized by the certificate of need or
a previously approved cost escalation is $500,000 or more.
(4) If an administrative escalation is
authorized, the certificate of need holder shall submit any additional
certificate of need application fee required by the increased capital
expenditure pursuant to
900 KAR
6:020.
(5)
The escalation of a capital expenditure in excess of the limits set forth in
subsection (3) of this section shall:
(a)
Constitute a substantial change in a project; and
(b) Require a certificate of need pursuant to
KRS
216B.061(1)(e).
(6) The unauthorized obligation of
a capital expenditure in excess of the amount authorized for a certificate of
need project shall be:
(a) Presumed to be a
willful violation of KRS Chapter 216B; and
(b) Subject to the penalties set forth at
KRS
216B.990(2).
STATUTORY AUTHORITY:
KRS
194A.030(1)(c) 4.,
216B.040(2)(a)1, 216B.061(4)