WSR 99-20-090

PROPOSED RULES

DEPARTMENT OF HEALTH


[ Filed October 5, 1999, 10:58 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 99-05-011.

Title of Rule: Certificate of need fees.

Purpose: Increase certificate of need fees sufficient to cover full operating costs as approved by the 1999 legislature.

Statutory Authority for Adoption: RCW 70.38.105(5).

Statute Being Implemented: RCW 70.38.105.

Summary: The amendments increase certificate of need fees, combine some fee categories and create new fee categories.

Reasons Supporting Proposal: The 1999 legislature approved an increase in the certificate of need fees sufficient to cover program operating costs.

Name of Agency Personnel Responsible for Drafting and Implementation: Janis Sigman, 2725 Harrison Avenue, Olympia, 98502, (360) 705-6631; and Enforcement: Gary Bennett, 2725 Harrison Avenue, Olympia, 98502, (360) 705-6652.

Name of Proponent: Department of Health, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: Amends fees for certificate of need program. Purpose is to provide for supplemental budget as approved by the legislature. The increase is anticipated to fully program operations as required by statute.

Proposal Changes the Following Existing Rules: Increases and amends certificate of need fees.

No small business economic impact statement has been prepared under chapter 19.85 RCW. This proposal is exempt under RCW 34.05.310(4) and therefore does not require a small business economic impact statement. However, the department prepared a fee study which provides documentation of the need for the fee increase.

RCW 34.05.328 does not apply to this rule adoption. Section 201, chapter 403, Laws of 1995 do not apply to rules that set or adjust fees or rates pursuant to legislative standards according to RCW 34.05.328 (5)(b)(vi).

Hearing Location: Department of Health, Target Plaza, Hearing Room, 2725 Harrison Avenue, Olympia, WA 98502, on November 9, 1999, at 2:00 p.m.

Assistance for Persons with Disabilities: Contact Jennell Prentice by October 26, 1999, (800) 833-6388, or (360) 705-6661.

Submit Written Comments to: Jennell Prentice, Rules Coordinator, Facilities and Services Licensing, P.O. Box 47852, Olympia, WA 98504-7852, Internet JZP0303@doh.wa.gov, fax (360) 705-6654, by November 9, 1999.

Date of Intended Adoption: November 15, 1999.

October 4, 1999

Eric Slagle

for Mary Selecky

Secretary

OTS-3435.1


AMENDATORY SECTION(Amending WSR 96-24-052, filed 11/27/96, effective 12/28/96)

WAC 246-310-990
Certificate of need review fees.

(1) An application for a certificate of need under chapter 246-310 WAC shall include payment of a fee consisting of the following:

(a) ((A nonrefundable application processing fee in the amount of seven hundred fifty dollars;

(b))) A review fee based on the facility/project ((description and the total capital expenditure)) type;

(b) When more than one facility/project type applies to an application, the review fee for each type of facility/project must be included.

((Project Description

Capital Expenditure Range
Review Fee

Additional

$

0

-

$100,000

$ 4,300
kidney disease 100,001 - 250,000 5,700
treatment center stations 250,001 or more 7,600
Administrative or 0 - 250,000 5,400
emergency review 250,001 or more 8,100
Amendment to a certi- 5,000
ficate of need
Bed addition of less 0 - 100,000 4,300
than 10 beds 100,001 - 5,000,000 5,700
5,000,001 or more 7,600
Bed addition of 10 0 - 500,000 8,100
beds or more 500,001 - 5,000,000 11,900
5,000,001 or more 15,700
Bed redistribution 0 - 100,000 7,000
or bed relocation 100,001 - 2,000,000 10,600
2,000,001 or more 13,200
Capital expenditure Exp. min. - 5,000,000 7,600
over the minimum 5,000,001 - 10,000,000 9,600
expenditure 10,000,001 or more 13,600
Establishment of a 0 - 2,000,000 10,600
new hospital, 2,000,001 or more 15,700
nursing home,
or continuing care
retirement community
Establishment of a 0 3,700
new home health agency, 1 - 100,000 5,700
hospice, ambulatory 100,001 or more 7,600
surgery facility, or
kidney disease treat-
ment center
Extension of the 150
certificate of need
validity period (pro-
jects involving plans
review by construc-
tion review unit) or
extension of nursing
home bed banking
Extension of the cer- 900
tificate of need
validity period (other
projects)
Replacement of an 1 - 2,000,000 5,400
existing health 2,000,001 - 5,000,000 8,100
care facility 5,000,001 or more 9,600
Sale, purchase, or 1 - 5,000,000 7,600
lease of part or 5,000,001 or more 11,500
all of an existing hospital
Substantial change 0 - 100,000 8,100
in services, or 100,001 - 2,000,000 10,600
offering a new 2,000,001 or more 15,700
tertiary health service
Transfer of a cer- 2,700
tificate of need))

(c) A nonrefundable two thousand dollar actuarial review fee surcharge for an application sponsored by an existing or proposed continuing care retirement community (CCRC) as defined in WAC 246-310-130 (3)(b).

(2) For purposes of subsection (1)(b) of this section, "total capital expenditure" means the total project costs to be capitalized according to generally accepted accounting principles consistently applied, and includes, but is not limited to, the following:

(a) Legal fees;

(b) Feasibility studies;

(c) Site development;

(d) Soil survey and investigation;

(e) Consulting fees;

(f) Interest expenses during construction;

(g) Temporary relocation;

(h) Architect and engineering fees;

(i) Construction, renovation, or alteration;

(j) Total costs of leases of capital assets;

(k) Labor;

(l) Materials;

(m) Equipment;

(n) Sales taxes;

(o) Equipment delivery; and

(p) Equipment installation.

(3) Where more than one project description under subsection (1)(b) of this section applies to an application, the applicant shall use the project description and capital expenditure range with the highest review fee in calculating the payment to accompany the application submittal.

(4) The applicant shall accompany the submittal of an amendment to))


Facility/Project Type Review Fee
Ambulatory Surgical Centers/Facilities $10,600
Amendments to Issued Certificates of Need $6,700
Emergency Review $4,300
Exemption Requests
Continuing Care Retirement Communities (CCRCs)/Health Maintenance Organization (HMOs) $4,300
Bed Banking/Conversions $ 700
Determinations of Nonreviewability $1,000
Hospice Care Center $ 900
Nursing Home Replacement/Renovation Authorizations $ 900
Nursing Home Capital Threshold under RCW 70.38.105 (4)(e) (Excluding Replacement/Renovation Authorizations) $ 900
Rural Hospital/Rural Health Care Facility $ 900
Extensions
Bed Banking $ 400
Certificate of Need/Replacement Renovation Authorization Validity Period $ 400
Home Health Agency $12,800
Hospice Agency $11,400
Hospital (Excluding Transitional Care Units-TCUs) $21,000
Kidney Disease Treatment Centers $13,000
Nursing Homes (Including CCRCs and TCUs) $24,000

(2) The fee for amending a certificate of need application ((with a fee consisting of the following)) shall be as follows:

(a) ((A nonrefundable processing fee of five hundred dollars;

(b))) When ((the)) an amendment ((increases the capital expenditure, or)) to a pending certificate of need application results in ((a)) the addition of one or more facility/project ((description with a larger review fee, an additional review fee based on the difference between the review fee previously paid when the application was submitted and the review fee applicable to the greater capital expenditure or new project description; and

(c))) types, the review fee for each additional facility/project type must accompany the amendment application;

(b) When ((the)) an amendment ((decreases the capital expenditure, or)) to a pending certificate of need application results in ((a)) the removal of one or more facility/project ((description with a smaller review fee)) types, the department shall refund to the applicant the difference between the review fee previously paid ((when the application was submitted)) and the review fee applicable to the ((smaller capital expenditure or)) new facility/project ((description)) type; or

(c) When an amendment to a pending certificate of need application results in any other change as identified in WAC 246-310-100, a fee of one thousand one hundred dollars must accompany the amendment application.

(((5))) (3) When ((an application for)) a certificate of need application is returned by the department in accordance with the provisions of WAC 246-310-090 (2)(b) or (e), the department shall refund ((all)) seventy-five percent of the review fees paid.

(((6))) (4) When an applicant submits a written request to withdraw ((an)) a certificate of need application before the beginning of review, the department shall refund ((any)) seventy-five percent of the review fees paid by the applicant.

(((7))) (5) When an applicant submits a written request to withdraw ((an)) a certificate of need application after the beginning of review, but before the beginning of the ex parte period ((as determined by the department consistent with WAC 246-310-190)), the department shall refund one-half of all review fees paid.

(((8))) (6) When an applicant submits a written request to withdraw ((an)) a certificate of need application after the beginning of the ex parte period ((as determined by the department consistent with WAC 246-310-190,)) the department shall not refund any of the review fees paid.

(((9) Other certificate of need program fees are:

(a) A nonrefundable two hundred fifty dollar processing fee for each request for an exemption from certificate of need review submitted under the provisions of WAC 246-310-040, 246-310-041, 246-310-042, 246-310-043; and

(b) A nonrefundable two hundred fifty dollar processing fee for each request for an exemption from certificate of need review submitted under the provisions of RCW 70.38.105 (4)(d).)) (7) Review fees for exemptions and extensions shall be nonrefundable.

[Statutory Authority: Chapter 70.38 RCW.  96-24-052, 246-310-990, filed 11/27/96, effective 12/28/96.  Statutory Authority: RCW 70.38.135, 43.70.250 and 70.38.919.  92-02-018 (Order 224), 246-310-990, filed 12/23/91, effective 1/23/92.  Statutory Authority: RCW 43.70.040.  91-02-049 (Order 121), recodified as 246-310-990, filed 12/27/90, effective 1/31/91.  Statutory Authority: Chapter 70.38 RCW.  90-15-001 (Order 070), 440-44-030, filed 7/6/90, effective 8/6/90.  Statutory Authority: RCW 43.20A.055.  89-21-042 (Order 2), 440-44-030, filed 10/13/89, effective 11/13/89; 87-16-084 (Order 2519), 440-44-030, filed 8/5/87; 87-12-049 (Order 2494), 440-44-030, filed 6/1/87; 84-13-006 (Order 2109), 440-44-030, filed 6/7/84; 83-21-015 (Order 2037), 440-44-030, filed 10/6/83.  Statutory Authority: 1982 c 201.  82-13-011 (Order 1825), 440-44-030, filed 6/4/82.]

Washington State Code Reviser's Office