Current through Register Vol. 54, No. 12, March 23, 2024
(a)
Procedures for notification and review of proposed capital expenditures shall
include the following:
(1) A health care
facility or health maintenance organization proposing to make a capital
expenditure subject to this chapter shall provide written notice of its intent
to make such capital expenditure to the designated planning agency not less
than 60 days prior to the date on which the obligation is expected to be
incurred. The designated planning agency shall forward the letter of intent to
the appropriate health systems agency.
(2) The notice shall be submitted on an
application form provided by the designated planning agency and shall contain
the information as may be required by the application and the health systems
agency to meet the needs of all the agencies whose respective fields of
responsibility cover the proposed expenditure. The designated planning agency
shall promptly publicize its receipt of the notice through local newspapers and
public information channels.
(3) If
the application under this subsection is found by the health systems agency to
be incomplete, the agency shall notify the person proposing the capital
expenditure within 15 days of its receipt of the incomplete application,
advising the person of the additional information required. Where the timely
notification of incompleteness is provided, the period within which the
designated planning agency is required to notify the person proposing the
expenditure that the expenditure is not approved, shall run from the date of
receipt by the health systems agency of an application containing the
additional information.
(4) The
health systems agency shall complete its review of an application for a capital
expenditure and send its findings and recommendation to the designated planning
agency no later than 70 days after receipt of a complete application.
(5) When an applicant makes a substantial
change in its project during review by the designated planning agency, the
applicant shall withdraw the application and resubmit it for a full review
under paragraph (1). When a substantial change is made by the applicant during
review by the health systems agency, the same procedure shall apply unless
waived by the health systems agency. A "substantial change," for purposes of
this paragraph, shall mean any alteration to a project which changes the site;
changes the project cost in excess of 20% or a limit established by the health
systems agency, whichever is smaller; changes the number of beds by 5% or five
beds, whichever is smaller; or substantially changes the services provided by
the health care facility.
(6) The
designated planning agency shall within 90 days after the receipt of a complete
application unless the applicant agrees to a longer period, provide written
notification to the applicant of its decision to recommend approval or
disapproval of a project to the Secretary of HHS or of its decision not to
review a project.
(7) A health
systems agency may, with the approval of the designated planning agency, give a
nonsubstantive review, that is, less than a full review, to a proposed capital
expenditure. Factors which will be considered in determining when to permit a
nonsubstantive review include a project cost of less than $100,000; replacement
of plant or equipment as a result of a natural disaster, fire, equipment
failure or similar occurrence requiring immediate replacement in order to
maintain continuity of operation; or alteration strictly for remedying Life
Safety Code deficiencies, supported by an inspection report from the
appropriate agency, when the need is apparent.
(8) The failure of the designated planning
agency to provide notification within the time limitations set forth in this
section shall have the effect of a recommendation of approval to the Secretary
of HHS.
(9) When the designated
planning agency notifies an applicant of its intention to recommend disapproval
of the proposed expenditure to the Secretary of HHS, it shall include the
reasons therefor and a summary of the findings and recommendations of the other
agencies with which such agency has consulted and shall provide an opportunity
for a fair hearing with respect to the findings and recommendations of the
designated planning agency at the request of the applicant.
(10) Copies of the findings and
recommendations of the designated planning agency shall also be sent to the
other agencies consulted, and shall be publicized through local newspapers and
public information channels.
(b) A person proposing a capital expenditure
may withdraw his previously filed application without prejudice by filing
simultaneous written notification of the withdrawal with the health systems
agency and the designated planning agency at any time prior to his receipt of
notice from the designated planning agency of its intention to make a
recommendation to the Secretary of HHS.
This section cited in 28 Pa. Code §
301.3 (relating to expenditures
covered); 28 Pa. Code §
301.9 (relating to determination
by the Secretary of HHS); 28 Pa. Code §
301.10 (relating to continuing
effect of determinations); and 28 Pa. Code §
301.11 (relating to phase-out of
health facilities review program).