Code of Maine Rules
10 - DEPARTMENT OF HEALTH AND HUMAN SERVICES
144 - DEPARTMENT OF HEALTH AND HUMAN SERVICES - GENERAL
Chapter 503 - MAINE CERTIFICATE OF NEED PROCEDURES MANUAL FOR HEALTH CARE FACILITIES (OTHER THAN NURSING CARE FACILITIES)
Chapter 4 - THE SCOPE OF CERTIFICATE OF NEED - COVERED ACTIVITIES
Section 144-503-4-1 - Certificate of Need Required
Universal Citation: 10 ME Code Rules ยง 144-503-4-1
Current through 2024-38, September 18, 2024
A. A person may not enter into any commitment for financing a project that requires a Certificate of Need or incur an expenditure for the project without having sought and received a Certificate of Need, except that this prohibition does not apply to obligations for financing conditioned upon the receipt of a Certificate of Need or to obligations for predevelopment activities. 22 M.R.S.A. Sec.329.
B. A Certificate of Need from the Department is required for:
1
Transfer of
ownership acquisition by lease, donation, transfer; acquisition of
control. Any transfer of ownership or acquisition under lease or
comparable arrangement or through donation or any acquisition of control of a
health care facility under lease, management agreement or comparable
arrangement or through donation that would have required review if the transfer
or acquisition had been by purchase, except in emergencies when that
acquisition of control is at the direction of the Department ( 22 M.R.S.A.
Sec.329(1));
2
Acquisitions
of major medical equipment. The use of major medical equipment on a
temporary basis in the case of a natural disaster, major accident or equipment
failure and the use of replacement equipment does not require a Certificate of
Need. Beginning September 30, 2004 and annually thereafter, the threshold
amount for review must be updated by the Commissioner to reflect the change in
the Consumer Price Index medical index ( 22 M.R.S.A. Sec.329(2));
3
Capital expenditures. Except
as provided in subsection 6, the obligation by or on behalf of a health care
facility of any capital expenditure of $2,400,000 or more. Capital expenditures
in the case of a natural disaster, major accident or equipment failure for
replacement equipment or for parking lots and garages, information and
communication systems and physician office space do not require a Certificate
of Need; however, the capital cost of these items must be included in the total
capital expenditure for a project that otherwise requires a Certificate of
Need. Beginning September 30, 2004 and annually thereafter, the threshold
amount for review must be updated by the Commissioner to reflect the change in
the Consumer Price Index medical index ( 22 M.R.S.A. Sec.329(3));
4
New health service. The
offering or development of any new health service( 22 M.R.S.A. Sec.329(4)
);
5
Changes in bed
complement. An increase in the existing licensed bed complement or an
increase in the licensed bed category of a health care facility, other than a
nursing facility, of greater than 10% ( 22 M.R.S.A. Sec.329(5));
6
Nursing facilities. The
obligation by a nursing facility, when related to nursing services provided by
the nursing facility, of any capital expenditures of $510,000 or more. A
Certificate of Need is not required for a nursing facility to convert beds used
for the provision of nursing services to beds to be used for the provision of
residential care services. If such a conversion occurs, public funds are not
obligated for payment of services provided in the converted beds ( 22 M.R.S.A.
Sec.329(6));
7
Other
circumstances. The following circumstances:
A. Any proposed use of major medical
equipment to serve inpatients of a hospital, if the equipment is not located in
a health care facility and was acquired without a Certificate of Need, except
acquisitions exempt from review under subsection 2 or 3; or
B. If a person adds a health service not
subject to review under subsection 4, paragraph A and not subject to review
under subsection 4, paragraph B at the time it was established and not reviewed
and approved prior to establishment at the request of the applicant, and its
actual 3rd fiscal year operating cost exceeds the expenditure minimum for
annual operating costs in the 3rd fiscal year of operation following addition
of these services ( 22 M.R.S.A. Sec.329(7)); and
8
Related Projects. Any projects
that the Department determines are related projects if such projects,
considered in the aggregate, would otherwise require a Certificate of Need
under this section. 22 M.R.S.A. Sec329(8).Projects will be deemed related if
the projects are (1) expected to be commenced by the same health care facility
within 12 months of each other, and (2) provide associated services within
outpatient or inpatient settings or financially impact like or similar cost
centers.
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