PERMANENT RULES
Effective Date of Rule: January 1, 2007.
Purpose: The rule amends WAC 246-310-010 Certificate of need definitions and 246-310-280 Kidney dialysis treatment centers, and prescribes the methodology for predicting the future need for kidney dialysis services, and the processes and practices by which the certificate of need program awards certificates to applicants who propose to provide these services. The proposed rules ensure clear, timely and consistent decisions.
Citation of Existing Rules Affected by this Order: Amending WAC 246-310-010 and 246-310-280.
Statutory Authority for Adoption: RCW 70.38.135.
Other Authority: RCW 70.38.135.
Adopted under notice filed as WSR 06-19-108 on September 20, 2006.
Changes Other than Editing from Proposed to Adopted Version: The rules differ from the proposed version to reflect changes requested by stakeholders during public comment. These changes provide more consistency and clarity than the proposed version of the rules. The rules also have a revised zip code listing for King, Pierce, Snohomish and Spokane planning areas and do not include post office zip codes.
A final cost-benefit analysis is available by contacting Yvette Fox, Department of Health, P.O. Box 47852, Olympia, WA 98504-7852, phone (360) 236-2928, fax (360) 236-2901, e-mail yvette.fox@doh.wa.gov.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 2, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 2, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 2, Repealed 0.
Date Adopted: December 1, 2006.
Mary C. Selecky
Secretary
OTS-8807.6
AMENDATORY SECTION(Amending WSR 04-17-054, filed 8/10/04,
effective 9/10/04)
WAC 246-310-010
Definitions.
For the purposes of
chapter 246-310 WAC, the following words and phrases ((shall))
have the following meanings unless the context clearly
indicates otherwise.
(1) "Acute care facilities" means hospitals and ambulatory surgical facilities.
(2) "Affected person" means an interested person
((meeting the following criteria)) who:
((•)) (a) Is located or resides in the applicant's health
service area;
((•)) (b) Testified at a public hearing or submitted
written evidence; and
((•)) (c) Requested in writing to be informed of the
department's decision.
(3) "Alterations," see "construction, renovation, or alteration."
(4) "Ambulatory care facility" means any place, building, institution, or distinct part thereof not a health care facility as defined in this section and operated for the purpose of providing health services to individuals without providing such services with board and room on a continuous twenty-four-hour basis. The term "ambulatory care facility" includes the offices of private physicians, whether for individual or group practice.
(5) "Ambulatory surgical facility" means any
free-standing entity, including an ambulatory surgery
center((,)) that operates primarily for the purpose of
performing surgical procedures to treat patients not requiring
hospitalization. This term does not include a facility in the
offices of private physicians or dentists, whether for
individual or group practice, if the privilege of using
((such)) the facility is not extended to physicians or
dentists outside the individual or group practice.
(6) "Applicant," means:
((•)) (a) Any person proposing to engage in any
undertaking subject to review under ((the provisions of))
chapter 70.38 RCW((.)); or
((•)) (b) Any person or individual with a ten percent or
greater financial interest in a partnership or corporation or
other comparable legal entity engaging in any undertaking
subject to review under ((the provisions of)) chapter 70.38 RCW.
(("Base year" as used in the kidney dialysis station
methodology means the last full calendar year preceding the
first year of dialysis station need projections.))
(7) "Bed banking" means the process of retaining the rights to nursing home bed allocations which are not licensed as outlined in WAC 246-310-395.
(8) "Bed supply" means within a geographic area the total number of:
((•)) (a) Nursing home beds which are licensed or
certificate of need approved but not yet licensed or beds
banked under ((the provisions of)) RCW 70.38.111 (8)(a) or
where the need is deemed met under ((the provisions of)) RCW 70.38.115 (13)(b), excluding:
((•)) (i) Those nursing home beds certified as
intermediate care facility for the mentally retarded (ICF-MR)
the operators of which have not signed an agreement on or
before July 1, 1990, with the department of social and health
services department of social and health services to give
appropriate notice prior to termination of the ICF-MR service;
((•)) (ii) New or existing nursing home beds within a
CCRC which are approved under ((the provisions of)) WAC 246-310-380(5); or
((•)) (iii) Nursing home beds within a CCRC which is
excluded from the definition of a health care facility per RCW 70.38.025(6); and
((•)) (iv) Beds banked under ((the provisions of)) RCW 70.38.115 (13)(b) where the need is not deemed met.
((•)) (b) Licensed hospital beds used for long-term care
or certificate of need approved hospital beds to be used for
long-term care not yet in use, excluding swing-beds.
(9) "Bed-to-population ratio" means the nursing home bed supply per one thousand persons of the estimated or forecasted resident population age sixty-five and older.
(10) "Capital expenditure": Except for WAC 246-310-280,
capital expenditure means an expenditure, including a force
account expenditure (i.e., an expenditure for a construction
project undertaken by a nursing home facility as its own
contractor), which, under generally accepted accounting
principles, is not properly chargeable as an expense of
operation or maintenance. The costs of any studies, surveys,
designs, plans, working drawings, specifications, and other
activities (including staff effort, consulting and other
services which, under generally accepted accounting
principles, are not properly chargeable as an expense of
operation and maintenance) shall be considered capital
expenditures. Where a person makes an acquisition under lease
or comparable arrangement, or through donation, which would
have required certificate of need review if the acquisition
had been made by purchase, ((such)) this acquisition shall be
deemed a capital expenditure. Capital expenditures include
donations of equipment or facilities to a nursing home
facility, which if acquired directly by ((such)) the facility,
would be subject to review under ((the provisions of)) this
chapter and transfer of equipment or facilities for less than
fair market value if a transfer of the equipment or facilities
at fair market value would be subject to ((such)) the review.
(11) "Certificate of need" means a written authorization by the secretary's designee for a person to implement a proposal for one or more undertakings.
(12) "Certificate of need program" means that organizational program of the department responsible for the management of the certificate of need program.
(13) "Commencement of the project" means whichever of the
following occurs first: In the case of a construction
project, giving notice to proceed with construction to a
contractor for a construction project provided applicable
permits have been applied for or obtained within sixty days of
((such)) the notice; beginning site preparation or
development; excavating or starting the foundation for a
construction project; or beginning alterations, modification,
improvement, extension, or expansion of an existing building.
In the case of other projects, initiating a health service.
(14) "Construction, renovation, or alteration" means the erection, building, remodeling, modernization, improvement, extension, or expansion of a physical plant of a health care facility, or the conversion of a building or portion thereof to a health care facility.
(15) "Continuing care contract" means a contract
providing a person, for the duration of that person's life or
for a term in excess of one year, shelter along with nursing,
medical, health-related, or personal care services. The
contract is conditioned on the transfer of property, the
payment of an entrance fee to the provider of ((such)) the
services, or the payment of periodic charges for the care and
services involved. A continuing care contract is not excluded
from this definition because the contract is mutually
terminable or because shelter and services are not provided at
the same location.
(16) "Continuing care retirement community (CCRC)" means any of a variety of entities, unless excluded from the definition of health care facility under RCW 70.38.025(6), which provides shelter and services based on continuing care contracts with its residents which:
((•)) Maintains for a period in excess of one year a CCRC
contract with a resident which provides or arranges for at
least the following specific services:
((•)) (a) Independent living units;
((•)) (b) Nursing home care with no limit on the number
of medically needed days;
((•)) (c) Assistance with activities of daily living;
((•)) (d) Services equivalent in scope to either state
chore services or Medicaid home health services;
((•)) (e) Continues a contract, if a resident is no
longer able to pay for services;
((•)) (f) Offers services only to contractual residents
with limited exception during a transition period; and
((•)) (g) Holds the Medicaid program harmless from
liability for costs of care, even if the resident depletes his
or her personal resources.
(17) "Days" means calendar days. Days are counted starting the day after the date of the event from which the designated period of time begins to run. If the last day of the period falls on a Saturday, Sunday, or legal holiday observed by the state of Washington, a designated period runs until the end of the first working day following the Saturday, Sunday, or legal holiday.
(18) "Department" means the Washington state department of health.
(19) "Effective date of facility closure" means:
((•)) (a) The date on which the facility's license was
relinquished, revoked or expired; or
((•)) (b) The date the last resident leaves the facility,
whichever comes first.
(("End-of-the-year incenter patients" means the number of
patients receiving incenter kidney dialysis at the end of the
calendar year.
"End-stage renal dialysis (ESRD) service areas" means each individual county, designated by the department as the smallest geographic area for which kidney dialysis station need projections are calculated, or other service area documented by patient origin.))
(20) "Enhance the quality of life for residents" means,
for the purposes of voluntary bed banking, those services or
facility modifications which have a direct and immediate
benefit to the residents. These ((shall)) include, but are
not ((be)) limited to: Resident activity and therapy
facilities; family visiting rooms; spiritual rooms and dining
areas. These services or facility modifications shall not
include those that do not have direct and immediate benefit to
the residents, such as: Modifications to staff offices;
meeting rooms; and other staff facilities.
(21) "Established ratio" means a bed-to-population ratio of forty beds per one thousand persons of the estimated or forecast resident population age sixty-five and older established for planning and policy-making purposes. The department may revise this established ratio using the process outlined in WAC 246-310-370.
(22) "Estimated bed need" means the number of nursing home beds calculated by multiplying the planning area's forecasted resident population by the established ratio for the projection year.
(23) "Estimated bed projection" means the number of nursing home beds calculated by the department statewide or within a planning area, by the end of the projection period.
(24) "Ex parte contact" means any oral or written communication between any person in the certificate of need program or any other person involved in the decision regarding an application for, or the withdrawal of, a certificate of need and the applicant for, or holder of, a certificate of need, any person acting on behalf of the applicant or holder, or any person with an interest regarding issuance or withdrawal of a certificate of need.
(25) "Expenditure minimum" means one million dollars for
the twelve-month period beginning with July 24, 1983, adjusted
annually by the department according to ((the provisions of))
WAC 246-310-900.
(26) "Health care facility" means hospitals, psychiatric
hospitals, nursing homes, kidney disease treatment centers
including freestanding dialysis units, ambulatory surgical
facilities, continuing care retirement communities, hospices
and home health agencies, and includes ((such)) the facilities
when owned and operated by a political subdivision or
instrumentality of the state and ((such)) other facilities as
required by federal law and ((implementing regulations))
rules, but does not include any health facility or institution
conducted by and for those who rely exclusively upon treatment
by prayer or spiritual means in accordance with the creed or
tenets of any well-recognized church or religious
denomination, or any health facility or institution operated
for the exclusive care of members of a convent as defined in
RCW 84.36.800 or rectory, monastery, or other institution
operated for the care of members of the clergy.
(a) In addition, the term "health care facility" does not include any nonprofit hospital:
((•)) (i) Operated exclusively to provide health care
services for children;
((•)) (ii) Which does not charge fees for ((such)) the
services; and
((•)) (iii) If not contrary to federal law as necessary
to the receipt of federal funds by the state.
((•)) (b) In addition, the term "health care facility"
does not include a continuing care retirement community which:
((•)) (i) Offers services only to contractual residents;
((•)) (ii) Provides its residents a contractually
guaranteed range of services from independent living through
skilled nursing, including some form of assistance with
activities of daily living;
((•)) (iii) Contractually assumes responsibility for
costs of services exceeding the resident's financial
responsibility as stated in contract, so that, with the
exception of insurance purchased by the retirement community
or its residents, no third party, including the Medicaid
program, is liable for costs of care even if the resident
depletes personal resources;
((•)) (iv) Offers continuing care contracts and operates
a nursing home continuously since January 1, 1988, or obtained
a certificate of need to establish a nursing home;
((•)) (v) Maintains a binding agreement with the
department of social and health services assuring financial
liability for services to residents, including nursing home
services, shall not fall upon the department of social and
health services;
((•)) (vi) Does not operate, and has not undertaken, a
project resulting in a number of nursing home beds in excess
of one for every four living units operated by the continuing
care retirement community, exclusive of nursing home beds; and
((•)) (vii) Has undertaken no increase in the total
number of nursing home beds after January 1, 1988, unless a
professional review of pricing and long-term solvency was
obtained by the retirement community within the prior five
years and fully disclosed to residents.
(27) "Health maintenance organization" means a public or private organization, organized under the laws of the state, which:
((•)) (a) Is a qualified health maintenance organization
under Title XIII, Section 1310(d) of the Public Health Service
Act; or
((•)) (b) Provides or otherwise makes available to
enrolled participants health care services, including at least
the following basic health care services: Usual physician
services, hospitalization, laboratory, X ray, emergency and
preventive services, and out-of-area coverage;
((•)) (c) Is compensated (except for copayments) for the
provision of the basic health care services listed in this
subsection to enrolled participants by a payment made on a
periodic basis without regard to the date the health care
services are provided and fixed without regard to the
frequency, extent, or kind of health service actually
provided; and
((•)) (d) Provides physicians' services primarily:
((•)) (i) Directly through physicians who are either
employees or partners of ((such)) the organization((,)); or
((•)) (ii) Through arrangements with individual
physicians or one or more groups of physicians (organized on a
group practice or individual practice basis).
(28) "Health service area" means a geographic region appropriate for effective health planning including a broad range of health services.
(29) "Health services" means clinically related (i.e., preventive, diagnostic, curative, rehabilitative, or palliative) services and includes alcoholism, drug abuse, and mental health services.
(30) "Home health agency" means an entity which is, or
has declared ((an)) its intent to become, certified as a
provider of home health services in the Medicaid or Medicare
program.
(31) "Hospice" means an entity which is, or has declared
((an)) its intent to become, certified as a provider of
hospice services in the Medicaid or Medicare program.
(32) "Hospital" means any institution, place, building or agency or distinct part thereof which qualifies or is required to qualify for a license under chapter 70.41 RCW, or as a psychiatric hospital licensed under chapter 71.12 RCW.
(33) "Inpatient" means a person receiving health care services with board and room in a health care facility on a continuous twenty-four-hour-a-day basis.
(34) "Interested persons" means:
((•)) (a) The applicant;
((•)) (b) Health care facilities and health maintenance
organizations providing services similar to the services under
review and located in the health service area;
((•)) (c) Third-party payers reimbursing health care
facilities in the health service area;
((•)) (d) Any agency establishing rates for health care
facilities and health maintenance organizations in the health
service area where the proposed project is to be located;
((•)) (e) Health care facilities and health maintenance
organizations which, in the twelve months prior to receipt of
the application, have submitted a letter of intent to provide
similar services in the same planning area;
((•)) (f) Any person residing within the geographic area
to be served by the applicant; and
((•)) (g) Any person regularly using health care
facilities within the geographic area to be served by the
applicant.
(("Justified home training station" means a kidney
dialysis station designated for home hemodialysis and/or
peritoneal dialysis training. When no dialysis stations have
been designated for home training at a given dialysis
treatment center, one station for every six patients trained
for home hemodialysis, and one station for every twenty
patients for peritoneal dialysis, will be considered a
justified home training station. In no case shall all
stations at a given dialysis treatment center be designated as
justified home training stations. To request justified home
training stations at a new dialysis treatment center, the
applicant must document that at least six patients are
projected to be trained for home hemodialysis or twenty
patients for peritoneal dialysis for each such station
requested for each of the first five years of projected
operations.
"Kidney disease treatment center" means any place, institution, building or agency or a distinct part thereof equipped and operated to provide services, including outpatient dialysis and/or kidney transplantation, to persons who have end-stage renal disease (ESRD).))
(35) "Licensee" means an entity or individual licensed by the department of health or the department of social and health services. For the purposes of nursing home projects, licensee refers to the operating entity and those persons specifically named in the license application as defined under chapter 388-97 WAC.
(36) "Net estimated bed need" means estimated bed need of a planning area changed by any redistribution as follows:
((•)) (a) Adding nursing home beds being redistributed
from another nursing home planning area or areas; or
((•)) (b) Subtracting nursing home beds being
redistributed to another nursing home planning area or areas.
(37) "New nursing home bed" means a nursing home bed
never licensed by the state or beds banked under ((the
provisions of)) RCW 70.38.115(13), where the applicant must
demonstrate need for the previously licensed nursing home
beds. This term does not include beds banked under ((the
provisions of)) RCW 70.38.111(8).
(38) "Nursing home" means any entity licensed or required
to be licensed under ((the provisions of)) chapter 18.51 RCW
or distinct part long-term care units located in a hospital
and licensed under chapter 70.41 RCW.
(39) "Obligation," when used in relation to a capital expenditure, means the following has been incurred by or on behalf of a health care facility:
((•)) (a) An enforceable contract has been entered into
by a health care facility or by a person on behalf of the
health care facility for the construction, acquisition, lease,
or financing of a capital asset; or
((•)) (b) A formal internal commitment of funds by a
health care facility for a force account expenditure
constituting a capital expenditure; or
((•)) (c) In the case of donated property, the date on
which the gift is completed in accordance with state law.
(40) "Offer," when used in connection with health services, means the health facility provides one or more specific health services.
(41) "Over the established ratio" means the bed-to-population ratio is greater than the statewide current established ratio.
(42) "Person" means an individual, a trust or estate, a partnership, a corporation (including associations, joint stock companies, and insurance companies), the state, or a political subdivision or instrumentality of the state, including a municipal corporation or a hospital district.
(43) "Planning area" means each individual county designated by the department as the smallest geographic area for which nursing home bed need projections are developed, except as follows:
((•)) (a) Clark and Skamania counties shall be one
planning area.
((•)) (b) Chelan and Douglas counties shall be one
planning area.
(44) "Predevelopment expenditures" means capital expenditures, the total of which exceeds the expenditure minimum, made for architectural designs, plans, drawings, or specifications in preparation for the acquisition or construction of physical plant facilities. "Predevelopment expenditures" exclude any obligation of a capital expenditure for the acquisition or construction of physical plant facilities and any activity which the department may consider the "commencement of the project" as this term is defined in this section.
(45) "Professional review of continuing care retirement community pricing and long-term solvency" means prospective financial statements, supported by professional analysis and documentation, which:
((•)) (a) Conform to Principles and Practices Board
Statement Number 9 of the Healthcare Financial Management
Association, "Accounting and Reporting Issues Related to
Continuing Care Retirement Communities"; and
((•)) (b) Project the financial operations of the
continuing care retirement community over a period of ten
years or more into the future; and
((•)) (c) Are prepared and signed by a qualified actuary
as defined under WAC 284-05-060 or an independent certified
public accountant, or are prepared by management of the
continuing care retirement community and reviewed by a
qualified actuary or independent certified public accountant
who issues a signed examination or compilation report on the
prospective financial statements; and
((•)) (d) Include a finding by management that the
intended expansion project of the continuing care retirement
project is financially feasible.
(46) "Project" means all undertakings proposed in a single certificate of need application or for which a single certificate of need is issued.
(47) "Project completion" for projects requiring construction, means the date the facility is licensed. For projects not requiring construction, project completion means initiating the health service.
(48) "Projection period" means the three-year time interval following the projection year.
(49) "Projection year" for nursing home purposes, means
the one-year time interval preceding the projection period. ((For kidney dialysis station projection purposes, means the
base year plus three years.))
(50) "Public comment period" means the time interval during which the department shall accept comments regarding a certificate of need application.
(51) "Redistribution" means the shift of nursing home bed allocations between two or more planning areas or the shift of nursing home beds between two or more nursing homes.
(52) "Replacement authorization" means a written authorization by the secretary's designee for a person to implement a proposal to replace existing nursing home beds in accordance with the eligibility requirements in WAC 246-310-044 and notice requirements in WAC 246-310-396.
(53) "Resident population" for purposes of nursing home projects, means the number of residents sixty-five years of age and older living within the same geographic area which:
((•)) (a) Excludes contract holders living within a
recognized CCRC:
((•)) (i) With approval for new nursing home beds under
((the provisions of)) WAC 246-310-380(((5))) (4); or
((•)) (ii) Excluded from the definition of a health care
facility per RCW 70.38.025(6);
((•)) (b) Is calculated using demographic data obtained
from:
((•)) (i) The office of financial management; and
((•)) (ii) Certificate of need applications and exemption
requests previously submitted by a CCRC.
(54) "Secretary" means the secretary of the Washington state department of health or the secretary's designee.
(55) "State Health Planning and Resources Development Act" means chapter 70.38 RCW.
(56) "Statewide current ratio" means a bed-to-population ratio computed from the most recent statewide nursing home bed supply and the most recent estimate of the statewide resident population.
(57) "Swing beds" means up to the first five hospital beds designated by an eligible rural hospital which are available to provide either acute care or nursing home services.
(58) "Tertiary health service" means a specialized service meeting complicated medical needs of people and requires sufficient patient volume to optimize provider effectiveness, quality of service, and improved outcomes of care.
(59) "Transition period" means the period of time, not exceeding five years, between the date a CCRC is inhabited by a member, and the date it fully meets the requirements of a CCRC.
(60) "Under the established ratio" means the bed-to-population ratio is less than the statewide current established ratio.
(61) "Undertaking" means any action subject to the provisions of chapter 246-310 WAC.
(62) "Working days" excludes Saturdays, Sundays, and legal holidays observed by the state of Washington. Working days are counted in the same way as calendar days.
[Statutory Authority: Chapter 70.38 RCW. 04-17-054, § 246-310-010, filed 8/10/04, effective 9/10/04; 98-10-053, § 246-310-010, filed 4/29/98, effective 5/30/98; 96-24-052, § 246-310-010, filed 11/27/96, effective 12/28/96. Statutory Authority: RCW 70.38.135 and 70.38.919. 92-02-018 (Order 224), § 246-310-010, filed 12/23/91, effective 1/23/92. Statutory Authority: RCW 43.70.040. 91-02-049 (Order 121), recodified as § 246-310-010, filed 12/27/90, effective 1/31/91. Statutory Authority: Chapter 70.38 RCW. 90-17-086 (Order 081), § 248-19-220, filed 8/17/90, effective 9/17/90; 90-02-093 (Order 023), § 248-19-220, filed 1/3/90, effective 2/3/90. Statutory Authority: RCW 70.38.135. 88-15-021 (Order 2639), § 248-19-220, filed 7/11/88; 86-06-030 (Order 2344), § 248-19-220, filed 2/28/86; 84-07-014 (Order 2082), § 248-19-220, filed 3/14/84; 81-09-012 (Order 210), § 248-19-220, filed 4/9/81, effective 5/20/81. Statutory Authority: Chapter 70.38 RCW. 79-12-079 (Order 188), § 248-19-220, filed 11/30/79.]
(2) The number of dialysis stations needed in an ESRD service area shall be determined using the following data of the Northwest Renal Network:
(a) The ESRD service area's total number of in center dialyses provided for the previous five years.
(b) The number of end of year incenter patients for the ESRD service area for the previous five years.
(c) The number of patients trained for home hemo and peritoneal dialysis for the ESRD service area for the previous five years.
(3) The number of dialysis stations projected as needed in an ESRD service area shall be determined using the following methodology:
(a) Project the number of incenter dialyses needed in the ESRD service area through a three-year future regression analysis of the previous five years' data.
(b) Project the number of incenter dialyses needed to serve residents of the ESRD service area by projecting the number of end of year incenter patients through a three-year future regression analysis of patient origin adjusted data for the previous five years. Multiply this result by one hundred fifty-six dialyses per year.
(c) Project the number of patients to be trained for home hemo and peritoneal dialysis in the service area through a three-year regression analysis of the previous five years' data.
(d) Determine the number of dialysis stations needed for incenter dialysis by dividing the result of (a) of this subsection by 748.8 (equivalent to eighty percent of a three-patient shift schedule).
(e) Determine the number of dialysis stations needed for incenter dialysis to serve residents of the service area by dividing the result of (b) of this subsection by 748.8 (equivalent to eighty percent of a three-patient shift schedule).
(f) Determine the number of stations needed for home hemo and peritoneal training in the service area by dividing the projected number of home hemo patients to be trained by six and peritoneal patients to be trained by twenty.
(g) Determine the number of dialysis stations needed in a service area by the projection year as the total of:
(i) The result of (e) of this subsection, designated as the number of resident stations;
(ii) The result of (d) of this subsection, minus the result of (e) of this subsection, designated as visitor stations;
(iii) The result of (f) of this subsection, designated as the number of training stations.
(h) To determine the net station need for an ESRD service area, subtract the number calculated in (g) of this subsection from the total number of certificate of need approved stations.
(4) All kidney disease treatment centers that would stand to lose market share by approval of the applicant's facility, must be operating at 748.8 dialyses per nontraining station per year before additional nontraining stations are approved.
(5) New incenter kidney disease treatment stations must reasonably project to be operating at 748.8 dialyses per nontraining station per year by the third year of operation.
(6) The department shall not issue certificates of need approving more than the number of stations identified as being needed in a given ESRD service area unless:
(a) The department finds such additional stations are needed to be located reasonably close to the people they serve; or
(b) Existing nontraining dialysis stations in the treatment facility are operating at nine hundred thirty-six dialyses per year (three-patient shifts); or
(c) The applicant can document a significant change in ESRD treatment practice has occurred, affecting dialysis station utilization in the service area; and
The department finds that an exceptional need exists and explains such approval in writing.)) The following definitions apply to WAC 246-310-280, 246-310-282, 246-310-284, 246-310-286, 246-310-287, 246-310-288, and 246-310-289:
(1) "Base year" means the most recent calendar year for which December 31 data is available as of the first day of the application submission period from the Northwest Renal Network's Modality Report or successor report.
(2) "Capital expenditures," as defined by Generally Accepted Accounting Principles (GAAP), are expenditures made to acquire tangible long-lived assets. Long-lived assets represent property and equipment used in a company's operations that have an estimated useful life greater than one year. Acquired long-lived assets are recorded at acquisition cost and include all costs incurred necessary to bring the asset to working order. The definition of a capital expenditure includes the following types of expenditures or acquisitions:
(a) A force account expenditure or acquisition (i.e., an expenditure for a construction project undertaken by a facility as its own contractor).
(b) The costs of any site planning services (architect or other site planning consultant) including but not limited to studies, surveys, designs, plans, working drawings, specifications, and other activities (including applicant staff payroll and employee benefit costs, consulting and other services which, under GAAP or Financial Accounting Standards Board (FASB) may be chargeable as an operating or nonoperating expense).
(c) Capital expenditure or acquisition under an operating or financing lease or comparable arrangement, or through donation, which would have required certificate of need review if the capital expenditure or acquisition had been made by purchase.
(d) Building owner tenant improvements including but not limited to: Asbestos removal, paving, concrete, contractor's general conditions, contractor's overhead and profit, electrical, heating, ventilation and air conditioning systems (HVAC), plumbing, flooring, rough and finish carpentry and millwork and associated labor and materials, and utility fees.
(e) Capital expenditures include donations of equipment or facilities to a facility.
(f) Capital expenditures do not include routine repairs and maintenance costs that do not add to the utility of useful life of the asset.
(3) "Concurrent review" means the process by which applications competing to provide services in the same planning area are reviewed simultaneously by the department. The department compares the applications to one another and these rules.
(4) "End-of-year data" means data contained in the fourth quarter modality report or successor report from the Northwest Renal Network. For these rules, end-of-year and year-end have the same meaning.
(5) "End-of-year in-center patients" means the number of in-center hemodialysis (HD) and self-dialysis training patients receiving in-center kidney dialysis at the end of the calendar year based on end-of-year data.
(6) "Kidney disease treatment center" means any place, institution, building or agency or a distinct part thereof equipped and operated to provide services, including outpatient dialysis, to persons who have end-stage renal disease (ESRD). In no case shall all stations at a given kidney disease treatment center be designated as self-dialysis training stations. For purposes of these rules, kidney disease treatment center and kidney dialysis facility have the same meaning.
(7) "Kidney dialysis facility" means any place, institution, building or agency or a distinct part thereof equipped and operated to provide services, including outpatient dialysis, to persons who have end-stage renal disease (ESRD). In no case shall all stations at a given kidney disease treatment center be designated as self-dialysis training stations. For purposes of these rules, kidney dialysis facility and kidney disease treatment center have the same meaning.
(8) "Planning area" means an individual geographic area designated by the department for which kidney dialysis station need projections are calculated. For purposes of kidney dialysis projects, planning area and service area have the same meaning.
(9) "Planning area boundaries": Each county is a separate planning area, except for the planning subareas identified for King, Snohomish, Pierce, and Spokane counties. If the United States Postal Service (USPS) changes zip codes in the defined planning areas, the department will update areas to reflect the revisions to the zip codes to be included in the certificate of need definitions, analyses and decisions.
(a) King County is divided by zip code into twelve planning areas as follows:
| KING ONE | KING TWO | KING THREE |
| 98028 Kenmore | 98101 Business District | 98070 Vashon |
| 98103 Green Lake | 98102 Eastlake | 98106 White Center/West Seattle |
| 98105 Laurelhurst | 98104 Business District | 98116 Alki/West Seattle |
| 98107 Ballard | 98108 Georgetown | 98126 West Seattle |
| 98115 View Ridge/Wedgwood | 98109 Queen Anne | 98136 West Seattle |
| 98117 Crown Hill | 98112 Madison/Capitol Hill | 98146 West Seattle |
| 98125 Lake City | 98118 Columbia City | 98168 Riverton |
| 98133 Northgate | 98119 Queen Anne | |
| 98155 Shoreline/Lake Forest Park | 98121 Denny Regrade | |
| 98177 Richmond Beach | 98122 Madrona | |
| 98195 University of Washington | 98134 Harbour Island | |
| 98144 Mt. Baker/Rainier Valley | ||
| 98199 Magnolia |
| KING FOUR | KING FIVE | KING SIX |
| 98148 SeaTac | 98003 Federal Way | 98011 Bothell |
| 98158 SeaTac | 98023 Federal Way | 98033 Kirkland |
| 98166 Burien/Normandy Park | 98034 Kirkland | |
| 98188 Tukwila/SeaTac | 98052 Redmond | |
| 98198 Des Moines | 98053 Redmond | |
| 98072 Woodinville | ||
| 98077 Woodinville |
| KING SEVEN | KING EIGHT | KING NINE |
| 98004 Bellevue | 98014 Carnation | 98055 Renton |
| 98005 Bellevue | 98019 Duvall | 98056 Renton |
| 98006 Bellevue | 98024 Fall City | 98058 Renton |
| 98007 Bellevue | 98045 North Bend | 98059 Renton |
| 98008 Bellevue | 98065 Snoqualmie | 98178 Skyway |
| 98027 Issaquah | ||
| 98029 Issaquah | ||
| 98039 Medina | ||
| 98040 Mercer Island | ||
| 98074 Sammamish | ||
| 98075 Sammamish |
| KING TEN | KING ELEVEN | KING TWELVE |
| 98030 Kent | 98001 Auburn | 98022 Enumclaw |
| 98031 Kent | 98002 Auburn | |
| 98032 Kent | 98010 Black Diamond | |
| 98038 Maple Valley | 98047 Pacific | |
| 98042 Kent | 98092 Auburn | |
| 98051 Ravensdale |
| PIERCE ONE | PIERCE TWO | PIERCE THREE |
| 98354 Milton | 98304 Ashford | 98329 Gig Harbor |
| 98371 Puyallup | 98323 Carbonade | 98332 Gig Harbor |
| 98372 Puyallup | 98328 Eatonville | 98333 Fox Island |
| 98373 Puyallup | 98330 Elbe | 98335 Gig Harbor |
| 98374 Puyallup | 98360 Orting | 98349 Lakebay |
| 98375 Puyallup | 98338 Graham | 98351 Longbranch |
| 98390 Sumner | 98321 Buckley | 98394 Vaughn |
| 98391 Bonney Lake |
| PIERCE FOUR | PIERCE FIVE |
| 98402 Tacoma | 98303 Anderson Island |
| 98403 Tacoma | 98327 DuPont |
| 98404 Tacoma | 98387 Spanaway |
| 98405 Tacoma | 98388 Steilacoom |
| 98406 Tacoma | 98430 Tacoma |
| 98407 Ruston | 98433 Tacoma |
| 98408 Tacoma | 98438 Tacoma |
| 98409 Lakewood | 98439 Lakewood |
| 98416 Tacoma | 98444 Parkland |
| 98418 Tacoma | 98445 Parkland |
| 98421 Tacoma | 98446 Parkland |
| 98422 Tacoma | 98447 Tacoma |
| 98424 Fife | 98467 University Place |
| 98443 Tacoma | 98498 Lakewood |
| 98465 Tacoma | 98499 Lakewood |
| 98466 Fircrest | 98580 Roy |
| SNOHOMISH ONE | SNOHOMISH TWO | SNOHOMISH THREE |
| 98223 Arlington | 98201 Everett | 98012 Mill Creek/Bothell |
| 98241 Darrington | 98203 Everett | 98020 Edmonds/Woodway |
| 98252 Granite Falls | 98204 Everett | 98021 Bothell |
| 98271 Tulalip
Reservation/ Marysville |
98205 Everett | 98026 Edmonds |
| 98282 Camano Island | 98208 Everett | 98036 Lynnwood/Brier |
| 98292 Stanwood | 98251 Gold Bar | 98037 Lynnwood |
| 98224 Baring | 98043 Mountlake Terrace | |
| 98258 Lake Stevens | 98087 Lynnwood | |
| 98270 Marysville | 98296 Snohomish | |
| 98272 Monroe | ||
| 98275 Mukilteo | ||
| 98288 Skykomish | ||
| 98290 Snohomish | ||
| 98294 Sultan |
| SPOKANE ONE | SPOKANE TWO |
| 99001 Airway Heights | 99003 Chattaroy |
| 99004 Cheney | 99005 Colbert |
| 99011 Fairchild Air Force Base | 99006 Deer Park |
| 99012 Fairfield | 99009 Elk |
| 99016 Greenacres | 99021 Mead |
| 99018 Latah | 99025 Newman Lake |
| 99019 Liberty Lake | 99026 Nine Mile Falls |
| 99022 Medical Lake | 99027 Otis Orchards |
| 99023 Mica | 99205 Spokane |
| 99030 Rockford | 99207 Spokane |
| 99031 Spangle | 99208 Spokane |
| 99036 Valleyford | 99217 Spokane |
| 99037 Veradale | 99218 Spokane |
| 99201 Spokane | 99251 Spokane |
| 99202 Spokane | |
| 99203 Spokane | |
| 99204 Spokane | |
| 99206 Spokane Valley | |
| 99212 Spokane Valley | |
| 99216 Spokane/Spokane Valley | |
| 99223 Spokane | |
| 99224 Spokane |
(11) "Resident in-center patients" means in-center hemodialysis (HD) and self-dialysis training patients that reside within the planning area. If more than fifty percent of a facility's patients reside outside Washington state, the facility may include these out-of-state patients in the resident count for the planning area.
(12) "Service area" means an individual geographic area designated by the department for which kidney dialysis station need projections are calculated. For purposes of kidney dialysis projects, service area and planning area have the same meaning.
(13) "Training services" means services provided by a kidney dialysis facility to train patients for home dialysis. Types of home dialysis include at least, but are not limited to, the following:
(a) Home peritoneal dialysis (HPD); and
(b) Home hemodialysis (HHD).
[Statutory Authority: Chapter 70.38 RCW. 96-24-052, § 246-310-280, filed 11/27/96, effective 12/28/96. Statutory Authority: RCW 70.38.135 (3)(c). 93-13-015 (Order 367), § 246-310-280, filed 6/7/93, effective 7/8/93. Statutory Authority: RCW 70.38.135 and 70.38.919. 92-02-018 (Order 224), § 246-310-280, filed 12/23/91, effective 1/23/92. Statutory Authority: RCW 43.70.040. 91-02-049 (Order 121), recodified as § 246-310-280, filed 12/27/90, effective 1/31/91. Statutory Authority: RCW 70.38.919. 90-16-058 (Order 073), § 248-19-701, filed 7/27/90, effective 8/27/90.]
(1) Applicants must submit applications for review according to the following table:
| Application Submission Period | Department Action |
Application Review Period | ||||||
| Concurrent Review Cycle | Letters of Intent Due | Receipt of Initial Application |
End of Screening Period | Applicant Response | Beginning of Review Preparation | Public Comment Period (includes public hearing if requested) | Rebuttal Period | Exparte Period |
| Kidney Dialysis Facility Cycle 1 | First working day through last working day of January of each year. | First working day through last working day of February of each year. | Last working day of March of each year. | Last working day of April of each year. | May 1 through May 15 | 60-Day
Public
comment
period Begins May 16 of each year or the first working day after May 16. |
30-Day
Rebuttal
period Applicant and affected party response to public comment. |
45-Day
Exparte
period Department evaluation and decision. |
| Kidney Dialysis Facility Cycle 2 | First working day through last working day of April of each year. | First working day through last working day of May of each year. | Last working day of June of each year. | Last working day of July of each year. | August 1 through August 15 | 60-Day
Public
comment
period Begins August 16 of each year or the first working day after August 16. |
30-Day
Rebuttal
period Applicant and affected party response to public comment. |
45-Day
Exparte
period Department evaluation and decision. |
| Kidney Dialysis Facility Cycle 3 | First working day through last working day of July of each year. | First working day through last working day of August of each year. | Last working day of September of each year. | Last working day of October of each year. | November 1 through November 15 | 60-Day
Public
comment
period Begins November 16 of each year or the first working day after November 16. |
30-Day
Rebuttal
period Applicant and affected party response to public comment. |
45-Day
Exparte
period Department evaluation and decision. |
| Kidney Dialysis Facility Cycle 4 | First working day through last working day of October of each year. | First working day through last working day of November of each year. | Last working day of December of each year. | Last working day of January of each year. | February 1 through February 15 |
60-Day
Public
comment
period Begins February 16 of each year or the first working day after February 16. |
30-Day
Rebuttal
period Applicant and affected party response to public comment. |
45-Day
Exparte
period Department evaluation and decision. |
(3) The department will notify applicants fifteen days prior to the scheduled decision date if it is unable to meet the deadline for making a decision on the application. In that event, the department will establish and commit to a new decision date.
(4) The department will not accept new applications for a planning area if there are any pending applications in that planning area filed under a previous concurrent review cycle or applications submitted prior to the effective date of these rules that affect any of the new planning areas, unless the department has not made a decision on the pending applications within the review timelines of nine months for a concurrent review and six months for a regular review.
(5) The department may convert the review of an application that was initially submitted under a concurrent review cycle to a regular review process if the department determines that the application does not compete with another application.
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(1) Applications for new stations may only address projected station need in the planning area in which the facility is to be located.
(a) If there is no existing facility in an adjacent planning area, the application may also address the projected station need in that planning area.
(b) Station need projections must be calculated separately for each planning area within the application.
(2) Data used to project station need must be the most recent five-year resident in-center year-end patient data available from the Northwest Renal Network as of the first day of the application submission period, concluding with the base year at the time of application.
(3) Projected station need must be based on 4.8 resident in-center patients per station for all planning areas except Adams, Columbia, Douglas, Ferry, Garfield, Jefferson, Kittitas, Klickitat, Lincoln, Okanogan, Pacific, Pend Oreille, San Juan, Skamania, Stevens, and Wahkiakum counties. The projected station need for these exception planning areas must be based on 3.2 resident in-center patients per station.
(4) The number of dialysis stations projected as needed in a planning area shall be determined by using the following methodology:
(a) Determine the type of regression analysis to be used to project resident in-center station need by calculating the annual growth rate in the planning area using the year-end number of resident in-center patients for each of the previous six consecutive years, concluding with the base year.
(i) If the planning area has experienced less than six percent growth in any of the previous five annual changes calculations, use linear regression to project station need; or
(ii) If the planning area has experienced six percent or greater growth in each of the previous five annual changes, use nonlinear (exponential) regression to project station need.
(b) Project the number of resident in-center patients in the projection year using the regression type determined in (a) of this subsection. When performing the regression analysis use the previous five consecutive years of year-end data concluding with the base year. For example, if the base year is 2005, use year-end data for 2001 through 2005 to perform the regression analysis.
(c) Determine the number of dialysis stations needed to serve resident in-center patients in the planning area in the projection year by dividing the result of (b) of this subsection by the appropriate resident in-center patient per station number from subsection (3) of this section. In order to assure access, fractional numbers are rounded up to the nearest whole number. For example, 5.1 would be rounded to 6. Rounding to a whole number is only allowed for determining the number of stations needed.
(d) To determine the net station need for a planning area, subtract the number calculated in (c) of this subsection from the total number of certificate of need approved stations located in the planning area.
(5) Before the department approves new in-center kidney dialysis stations, all certificate of need approved stations in the planning area must be operating at 4.8 in-center patients per station for all planning areas except Adams, Columbia, Douglas, Ferry, Garfield, Jefferson, Kittitas, Klickitat, Lincoln, Okanogan, Pacific, Pend Oreille, San Juan, Skamania, Stevens, and Wahkiakum counties. For these exception planning areas all certificate of need approved stations in the planning area must be operating at 3.2 in-center patients per station. Both resident and nonresident patients using the dialysis facility are included in this calculation. Data used to make this calculation must be from the most recent quarterly modality report or successor report from the Northwest Renal Network as of the first day of the application submission period.
(6) By the third full year of operation, new in-center kidney dialysis stations must reasonably project to be operating at:
(a) 4.8 in-center patients per station for those facilities required to operate at 4.8 in-center patients as identified in subsection (5) of this section; or
(b) 3.2 in-center patients per station for those facilities required to operate at 3.2 in-center patients as identified in subsection (5) of this section.
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(1) All other applicable review criteria and standards have been met; and
(2) One or more of the following have been met:
(a) The department finds the additional stations are needed to be located reasonably close to the people they serve; or
(b) Existing dialysis stations in the dialysis facility are operating at six patients per station. Data used to make this calculation must be from the most recent quarterly modality report or successor report from the Northwest Renal Network as of the first day of the application submission period; or
(c) The applicant can document a significant change in ESRD treatment practice has occurred, affecting dialysis station use in the planning area; and
(3) The department finds that exceptional circumstances exist within the planning area and explains the approval of additional stations in writing.
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(1) The department will award one point per tie-breaker to any applicant that meets a tie-breaker criteria in this subsection.
(a) Training services (1 point):
(i) The applicant is an existing provider in the planning area and either offers training services at the facility proposed to be expanded or offers training services in any of its existing facilities within a thirty-five mile radius of the existing facility; or
(ii) The applicant is an existing provider in the planning area that offers training services in any of its existing facilities within thirty-five miles of the proposed new facility and either intends to offer training services at the new facility or through those existing facilities; or
(iii) The applicant, not currently located in the planning area, proposes to establish a new facility with training services and demonstrates a historical and current provision of training services at its other facilities; and
(iv) Northwest Renal Network's most recent year-end facility survey must document the provision of these training services by the applicant.
(b) Private room(s) for isolating patients needing dialysis (1 point).
(c) Permanent bed stations at the facility (1 point).
(d) Evening shift (1 point): The applicant currently offers, or as part of its application proposes to offer at the facility a dialysis shift that begins after 5:00 p.m.
(e) Meeting the projected need (1 point): Each application that proposes the number of stations that most closely approximates the projected need.
(2) Only one applicant may be awarded a point for each of the following four tie-breaker criteria:
(a) Economies of scale (1 point): Compared to the other applications, an applicant demonstrates its proposal has the lowest capital expenditure per new station.
(b) Historical provider (1 point):
(i) The applicant was the first to establish a facility within a planning area; and
(ii) The application to expand the existing facility is being submitted within five years of the opening of its facility; or
(iii) The application is to build an additional new facility within five years of the opening of its first facility.
(c) Patient geographical access (1 point): The application proposing to establish a new facility within a planning area that will result in services being offered closer to people in need of them. The department will award the point for the facility located farthest away from existing facilities within the planning area provided:
(i) The facility is at least three miles away from the next closest existing facility in planning areas that qualify for 4.8 patients per station; or
(ii) The facility is at least eight miles from the next closest existing facility in planning areas that qualify for 3.2 patients per station.
(d) Provider choice (1 point):
(i) The applicant does not currently have a facility located within the planning area;
(ii) The department will consider a planning area as having one provider when a single provider has multiple facilities in the same planning area;
(iii) If there are already two unrelated providers located in the same planning area, no point will be awarded.
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(2) When an existing facility proposes to relocate a portion of its stations to either another planning area or within the same planning area, a new health care facility is considered to be established under WAC 246-310-020(1).
(3) When an entire facility proposes to relocate within the same planning area, a new health care facility is not considered to be established under WAC 246-310-020(1) if:
(a) The existing facility ceases operation;
(b) No new stations are added to the replacement facility;
(c) There is no break in service between the closure of the existing facility and the operation of the replacement facility;
(d) The existing facility has been in operation for at least five years at its present location; and
(e) The existing facility has not been purchased, sold or leased within the past five years.
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